Correlation Between Stone Harbor and HUMANA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Stone Harbor Local and HUMANA INC, you can compare the effects of market volatilities on Stone Harbor 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 Stone Harbor with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Harbor and HUMANA.
Diversification Opportunities for Stone Harbor and HUMANA
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stone and HUMANA is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Stone Harbor Local and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Stone Harbor 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 Stone Harbor Local 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 Stone Harbor i.e., Stone Harbor and HUMANA go up and down completely randomly.
Pair Corralation between Stone Harbor and HUMANA
Assuming the 90 days horizon Stone Harbor Local is expected to generate 0.8 times more return on investment than HUMANA. However, Stone Harbor Local is 1.25 times less risky than HUMANA. It trades about 0.01 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.01 per unit of risk. If you would invest 806.00 in Stone Harbor Local on September 3, 2024 and sell it today you would earn a total of 5.00 from holding Stone Harbor Local or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.6% |
| Values | Daily Returns |
Stone Harbor Local vs. HUMANA INC
Performance |
| Timeline |
| Stone Harbor Local |
| HUMANA INC |
Stone Harbor and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stone Harbor and HUMANA
The main advantage of trading using opposite Stone Harbor and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Harbor 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.| Stone Harbor vs. HUMANA INC | Stone Harbor vs. Aquagold International | Stone Harbor vs. Barloworld Ltd ADR | Stone Harbor vs. Morningstar Unconstrained Allocation |
| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |