Correlation Between Somerset Trust and HUMANA
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By analyzing existing cross correlation between Somerset Trust Holding and HUMANA INC, you can compare the effects of market volatilities on Somerset Trust 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 Somerset Trust with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Somerset Trust and HUMANA.
Diversification Opportunities for Somerset Trust and HUMANA
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Somerset and HUMANA is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Somerset Trust Holding and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Somerset Trust 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 Somerset Trust Holding 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 Somerset Trust i.e., Somerset Trust and HUMANA go up and down completely randomly.
Pair Corralation between Somerset Trust and HUMANA
Given the investment horizon of 90 days Somerset Trust Holding is expected to generate 2.27 times more return on investment than HUMANA. However, Somerset Trust is 2.27 times more volatile than HUMANA INC. It trades about 0.04 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.04 per unit of risk. If you would invest 4,033 in Somerset Trust Holding on September 1, 2024 and sell it today you would earn a total of 293.00 from holding Somerset Trust Holding or generate 7.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Somerset Trust Holding vs. HUMANA INC
Performance |
| Timeline |
| Somerset Trust Holding |
| HUMANA INC |
Somerset Trust and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Somerset Trust and HUMANA
The main advantage of trading using opposite Somerset Trust and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Somerset Trust 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.| Somerset Trust vs. HUMANA INC | Somerset Trust vs. SCOR PK | Somerset Trust vs. Aquagold International | Somerset Trust vs. Thrivent High Yield |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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