Correlation Between Seven Arts and HUMANA
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By analyzing existing cross correlation between Seven Arts Entertainment and HUMANA INC, you can compare the effects of market volatilities on Seven Arts 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 Seven Arts with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seven Arts and HUMANA.
Diversification Opportunities for Seven Arts and HUMANA
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Seven and HUMANA is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Seven Arts Entertainment and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Seven Arts 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 Seven Arts Entertainment 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 Seven Arts i.e., Seven Arts and HUMANA go up and down completely randomly.
Pair Corralation between Seven Arts and HUMANA
Given the investment horizon of 90 days Seven Arts Entertainment is expected to generate 22.76 times more return on investment than HUMANA. However, Seven Arts is 22.76 times more volatile than HUMANA INC. It trades about 0.06 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.03 per unit of risk. If you would invest 0.05 in Seven Arts Entertainment on August 27, 2024 and sell it today you would lose (0.01) from holding Seven Arts Entertainment or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.87% |
| Values | Daily Returns |
Seven Arts Entertainment vs. HUMANA INC
Performance |
| Timeline |
| Seven Arts Entertainment |
| HUMANA INC |
Seven Arts and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seven Arts and HUMANA
The main advantage of trading using opposite Seven Arts and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seven Arts 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.| Seven Arts vs. HUMANA INC | Seven Arts vs. SCOR PK | Seven Arts vs. Aquagold International | Seven Arts vs. Barloworld Ltd ADR |
| HUMANA vs. Balchem | HUMANA vs. Stepan Company | HUMANA vs. Videolocity International | HUMANA vs. Luxfer Holdings PLC |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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