Correlation Between Urban One and HUMANA
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By analyzing existing cross correlation between Urban One and HUMANA INC, you can compare the effects of market volatilities on Urban One 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 Urban One with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban One and HUMANA.
Diversification Opportunities for Urban One and HUMANA
Poor diversification
The 3 months correlation between Urban and HUMANA is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Urban One and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Urban One 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 Urban One 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 Urban One i.e., Urban One and HUMANA go up and down completely randomly.
Pair Corralation between Urban One and HUMANA
Given the investment horizon of 90 days Urban One is expected to under-perform the HUMANA. But the stock apears to be less risky and, when comparing its historical volatility, Urban One is 17.26 times less risky than HUMANA. The stock trades about -0.03 of its potential returns per unit of risk. The HUMANA INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,012 in HUMANA INC on August 31, 2024 and sell it today you would lose (317.00) from holding HUMANA INC or give up 3.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.94% |
| Values | Daily Returns |
Urban One vs. HUMANA INC
Performance |
| Timeline |
| Urban One |
| HUMANA INC |
Urban One and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban One and HUMANA
The main advantage of trading using opposite Urban One and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban One 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.| Urban One vs. TVA Group | Urban One vs. Saga Communications | Urban One vs. E W Scripps | Urban One vs. Cumulus Media Class |
| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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