Correlation Between Swedbank and HUMANA
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By analyzing existing cross correlation between Swedbank AB and HUMANA INC, you can compare the effects of market volatilities on Swedbank 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 Swedbank with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swedbank and HUMANA.
Diversification Opportunities for Swedbank and HUMANA
Poor diversification
The 3 months correlation between Swedbank and HUMANA is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Swedbank AB and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Swedbank 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 Swedbank AB 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 Swedbank i.e., Swedbank and HUMANA go up and down completely randomly.
Pair Corralation between Swedbank and HUMANA
Assuming the 90 days horizon Swedbank AB is expected to generate 2.51 times more return on investment than HUMANA. However, Swedbank is 2.51 times more volatile than HUMANA INC. It trades about 0.03 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.02 per unit of risk. If you would invest 1,775 in Swedbank AB on September 2, 2024 and sell it today you would earn a total of 185.00 from holding Swedbank AB or generate 10.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.98% |
| Values | Daily Returns |
Swedbank AB vs. HUMANA INC
Performance |
| Timeline |
| Swedbank AB |
| HUMANA INC |
Swedbank and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swedbank and HUMANA
The main advantage of trading using opposite Swedbank and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swedbank 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.| Swedbank vs. HUMANA INC | Swedbank vs. SCOR PK | Swedbank vs. Aquagold International | Swedbank 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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