Correlation Between Uber Technologies and HUMANA
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By analyzing existing cross correlation between Uber Technologies and HUMANA INC, you can compare the effects of market volatilities on Uber 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 Uber Technologies with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and HUMANA.
Diversification Opportunities for Uber Technologies and HUMANA
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Uber and HUMANA is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Uber 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 Uber 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 Uber Technologies i.e., Uber Technologies and HUMANA go up and down completely randomly.
Pair Corralation between Uber Technologies and HUMANA
Given the investment horizon of 90 days Uber Technologies is expected to generate 42.94 times less return on investment than HUMANA. But when comparing it to its historical volatility, Uber Technologies is 39.13 times less risky than HUMANA. It trades about 0.07 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 7,887 in HUMANA INC on September 2, 2024 and sell it today you would lose (192.00) from holding HUMANA INC or give up 2.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.58% |
| Values | Daily Returns |
Uber Technologies vs. HUMANA INC
Performance |
| Timeline |
| Uber Technologies |
| HUMANA INC |
Uber Technologies and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and HUMANA
The main advantage of trading using opposite Uber Technologies and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber 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.| Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake | Uber Technologies vs. Workday | Uber Technologies vs. C3 Ai Inc |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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