Correlation Between Sterling Capital and HUMANA
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By analyzing existing cross correlation between Sterling Capital Behavioral 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
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sterling and HUMANA is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Behavioral 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 Behavioral 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 Behavioral is expected to generate 0.58 times more return on investment than HUMANA. However, Sterling Capital Behavioral is 1.74 times less risky than HUMANA. It trades about -0.02 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.16 per unit of risk. If you would invest 1,019 in Sterling Capital Behavioral on September 1, 2024 and sell it today you would lose (4.00) from holding Sterling Capital Behavioral or give up 0.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Sterling Capital Behavioral vs. HUMANA INC
Performance |
| Timeline |
| Sterling Capital Beh |
| 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. Dreyfus Government Cash | Sterling Capital vs. Government Securities Fund | Sterling Capital vs. Franklin Adjustable Government | Sterling Capital vs. Prudential Government Income |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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