Correlation Between Sterling Capital and HUMANA
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By analyzing existing cross correlation between Sterling Capital Stratton and HUMANA INC, you can compare the effects of market volatilities on Sterling Capital 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 Sterling Capital with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and HUMANA.
Diversification Opportunities for Sterling Capital and HUMANA
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sterling and HUMANA is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Stratton and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Sterling Capital 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 Sterling Capital Stratton 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 Sterling Capital i.e., Sterling Capital and HUMANA go up and down completely randomly.
Pair Corralation between Sterling Capital and HUMANA
Assuming the 90 days horizon Sterling Capital Stratton is expected to generate 0.71 times more return on investment than HUMANA. However, Sterling Capital Stratton is 1.41 times less risky than HUMANA. It trades about 0.33 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.18 per unit of risk. If you would invest 3,826 in Sterling Capital Stratton on September 2, 2024 and sell it today you would earn a total of 226.00 from holding Sterling Capital Stratton or generate 5.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Sterling Capital Stratton vs. HUMANA INC
Performance |
| Timeline |
| Sterling Capital Stratton |
| HUMANA INC |
Sterling Capital and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and HUMANA
The main advantage of trading using opposite Sterling Capital and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital 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.| Sterling Capital vs. Columbia Real Estate | Sterling Capital vs. Alpine Realty Income | Sterling Capital vs. Davis Real Estate | Sterling Capital vs. Sterling Capital Stratton |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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