Correlation Between Sensient Technologies and HUMANA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sensient Technologies and HUMANA INC, you can compare the effects of market volatilities on Sensient Technologies 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 Sensient Technologies with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sensient Technologies and HUMANA.
Diversification Opportunities for Sensient Technologies and HUMANA
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sensient and HUMANA is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Sensient Technologies and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Sensient Technologies 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 Sensient Technologies 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 Sensient Technologies i.e., Sensient Technologies and HUMANA go up and down completely randomly.
Pair Corralation between Sensient Technologies and HUMANA
Considering the 90-day investment horizon Sensient Technologies is expected to under-perform the HUMANA. In addition to that, Sensient Technologies is 2.05 times more volatile than HUMANA INC. It trades about -0.04 of its total potential returns per unit of risk. HUMANA INC is currently generating about 0.04 per unit of volatility. If you would invest 8,140 in HUMANA INC on October 19, 2024 and sell it today you would earn a total of 304.00 from holding HUMANA INC or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Sensient Technologies vs. HUMANA INC
Performance |
| Timeline |
| Sensient Technologies |
| HUMANA INC |
Sensient Technologies and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sensient Technologies and HUMANA
The main advantage of trading using opposite Sensient Technologies and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sensient Technologies 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.| Sensient Technologies vs. Innospec | Sensient Technologies vs. Minerals Technologies | Sensient Technologies vs. Oil Dri | Sensient Technologies vs. H B Fuller |
| HUMANA vs. NETGEAR | HUMANA vs. Arrow Electronics | HUMANA vs. Lizhan Environmental | HUMANA vs. CECO Environmental Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stocks Directory Find actively traded stocks across global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |