Correlation Between Pason Systems and HUMANA
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By analyzing existing cross correlation between Pason Systems and HUMANA INC, you can compare the effects of market volatilities on Pason Systems and HUMANA and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Pason Systems with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pason Systems and HUMANA.
Diversification Opportunities for Pason Systems and HUMANA
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pason and HUMANA is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Pason Systems and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Pason Systems is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Pason Systems are associated (or correlated) with HUMANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUMANA INC has no effect on the direction of Pason Systems i.e., Pason Systems and HUMANA go up and down completely randomly.
Pair Corralation between Pason Systems and HUMANA
Assuming the 90 days horizon Pason Systems is expected to generate 344.05 times less return on investment than HUMANA. But when comparing it to its historical volatility, Pason Systems is 25.47 times less risky than HUMANA. It trades about 0.01 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,063 in HUMANA INC on September 5, 2024 and sell it today you would lose (368.00) from holding HUMANA INC or give up 4.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.85% |
| Values | Daily Returns |
Pason Systems vs. HUMANA INC
Performance |
| Timeline |
| Pason Systems |
| HUMANA INC |
Pason Systems and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pason Systems and HUMANA
The main advantage of trading using opposite Pason Systems and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pason Systems position performs unexpectedly, HUMANA can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in HUMANA will offset losses from the drop in HUMANA's long position.| Pason Systems vs. Seadrill Limited | Pason Systems vs. Noble plc | Pason Systems vs. Borr Drilling | Pason Systems vs. SCOR PK |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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