Correlation Between Technology Telecommunicatio and HUMANA
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By analyzing existing cross correlation between Technology Telecommunication and HUMANA INC, you can compare the effects of market volatilities on Technology Telecommunicatio 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 Technology Telecommunicatio with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Technology Telecommunicatio and HUMANA.
Diversification Opportunities for Technology Telecommunicatio and HUMANA
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Technology and HUMANA is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Technology Telecommunication and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Technology Telecommunicatio 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 Technology Telecommunication 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 Technology Telecommunicatio i.e., Technology Telecommunicatio and HUMANA go up and down completely randomly.
Pair Corralation between Technology Telecommunicatio and HUMANA
Given the investment horizon of 90 days Technology Telecommunication is expected to generate 0.14 times more return on investment than HUMANA. However, Technology Telecommunication is 7.38 times less risky than HUMANA. It trades about 0.28 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.19 per unit of risk. If you would invest 1,218 in Technology Telecommunication on September 13, 2024 and sell it today you would earn a total of 11.00 from holding Technology Telecommunication or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Technology Telecommunication vs. HUMANA INC
Performance |
| Timeline |
| Technology Telecommunicatio |
| HUMANA INC |
Technology Telecommunicatio and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Technology Telecommunicatio and HUMANA
The main advantage of trading using opposite Technology Telecommunicatio and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Technology Telecommunicatio 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.| Technology Telecommunicatio vs. Target Global Acquisition | Technology Telecommunicatio vs. Healthcare AI Acquisition |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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