Correlation Between Summa Silver and HUMANA
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By analyzing existing cross correlation between Summa Silver Corp and HUMANA INC, you can compare the effects of market volatilities on Summa Silver 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 Summa Silver with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summa Silver and HUMANA.
Diversification Opportunities for Summa Silver and HUMANA
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Summa and HUMANA is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Summa Silver Corp and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Summa Silver 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 Summa Silver Corp 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 Summa Silver i.e., Summa Silver and HUMANA go up and down completely randomly.
Pair Corralation between Summa Silver and HUMANA
Assuming the 90 days horizon Summa Silver Corp is expected to under-perform the HUMANA. In addition to that, Summa Silver is 3.17 times more volatile than HUMANA INC. It trades about -0.32 of its total potential returns per unit of risk. HUMANA INC is currently generating about -0.18 per unit of volatility. If you would invest 8,036 in HUMANA INC on September 2, 2024 and sell it today you would lose (341.00) from holding HUMANA INC or give up 4.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Summa Silver Corp vs. HUMANA INC
Performance |
| Timeline |
| Summa Silver Corp |
| HUMANA INC |
Summa Silver and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summa Silver and HUMANA
The main advantage of trading using opposite Summa Silver and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summa Silver 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.| Summa Silver vs. HUMANA INC | Summa Silver vs. SCOR PK | Summa Silver vs. Aquagold International | Summa Silver vs. Thrivent High Yield |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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