Correlation Between Slate Office and HUMANA
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By analyzing existing cross correlation between Slate Office REIT and HUMANA INC, you can compare the effects of market volatilities on Slate Office 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 Slate Office with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Office and HUMANA.
Diversification Opportunities for Slate Office and HUMANA
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Slate and HUMANA is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Slate Office REIT and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Slate Office 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 Slate Office REIT 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 Slate Office i.e., Slate Office and HUMANA go up and down completely randomly.
Pair Corralation between Slate Office and HUMANA
Assuming the 90 days horizon Slate Office REIT is expected to generate 10.45 times more return on investment than HUMANA. However, Slate Office is 10.45 times more volatile than HUMANA INC. It trades about 0.1 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.15 per unit of risk. If you would invest 24.00 in Slate Office REIT on September 2, 2024 and sell it today you would earn a total of 9.00 from holding Slate Office REIT or generate 37.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.92% |
| Values | Daily Returns |
Slate Office REIT vs. HUMANA INC
Performance |
| Timeline |
| Slate Office REIT |
| HUMANA INC |
Slate Office and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Office and HUMANA
The main advantage of trading using opposite Slate Office and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Office 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.| Slate Office vs. Franklin Street Properties | Slate Office vs. Douglas Emmett | Slate Office vs. Highwoods Properties | Slate Office vs. Brandywine Realty Trust |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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