Correlation Between Realfiction Holding and Humana AB
Can any of the company-specific risk be diversified away by investing in both Realfiction Holding and Humana AB at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Realfiction Holding and Humana AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Realfiction Holding AB and Humana AB, you can compare the effects of market volatilities on Realfiction Holding and Humana AB 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 Realfiction Holding with a short position of Humana AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Realfiction Holding and Humana AB.
Diversification Opportunities for Realfiction Holding and Humana AB
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Realfiction and Humana is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Realfiction Holding AB and Humana AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana AB and Realfiction Holding 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 Realfiction Holding AB are associated (or correlated) with Humana AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humana AB has no effect on the direction of Realfiction Holding i.e., Realfiction Holding and Humana AB go up and down completely randomly.
Pair Corralation between Realfiction Holding and Humana AB
Assuming the 90 days trading horizon Realfiction Holding is expected to generate 2.13 times less return on investment than Humana AB. In addition to that, Realfiction Holding is 1.88 times more volatile than Humana AB. It trades about 0.01 of its total potential returns per unit of risk. Humana AB is currently generating about 0.06 per unit of volatility. If you would invest 3,240 in Humana AB on August 29, 2024 and sell it today you would earn a total of 410.00 from holding Humana AB or generate 12.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Realfiction Holding AB vs. Humana AB
Performance |
| Timeline |
| Realfiction Holding |
| Humana AB |
Realfiction Holding and Humana AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Realfiction Holding and Humana AB
The main advantage of trading using opposite Realfiction Holding and Humana AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Realfiction Holding position performs unexpectedly, Humana AB 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 AB will offset losses from the drop in Humana AB's long position.| Realfiction Holding vs. Sivers IMA Holding | Realfiction Holding vs. AAC Clyde Space | Realfiction Holding vs. Kancera AB | Realfiction Holding vs. Bambuser AB |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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