Correlation Between Energy Services and HUMANA
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By analyzing existing cross correlation between Energy Services Fund and HUMANA INC, you can compare the effects of market volatilities on Energy Services 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 Energy Services with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Services and HUMANA.
Diversification Opportunities for Energy Services and HUMANA
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ENERGY and HUMANA is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Energy Services Fund and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Energy Services 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 Energy Services Fund 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 Energy Services i.e., Energy Services and HUMANA go up and down completely randomly.
Pair Corralation between Energy Services and HUMANA
Assuming the 90 days horizon Energy Services Fund is expected to generate 2.79 times more return on investment than HUMANA. However, Energy Services is 2.79 times more volatile than HUMANA INC. It trades about 0.0 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.04 per unit of risk. If you would invest 25,072 in Energy Services Fund on September 1, 2024 and sell it today you would lose (445.00) from holding Energy Services Fund or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Energy Services Fund vs. HUMANA INC
Performance |
| Timeline |
| Energy Services |
| HUMANA INC |
Energy Services and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy Services and HUMANA
The main advantage of trading using opposite Energy Services and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Services 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.| Energy Services vs. Basic Materials Fund | Energy Services vs. Electronics Fund Investor | Energy Services vs. Health Care Fund | Energy Services vs. Precious Metals Fund |
| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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