Correlation Between 00108WAF7 and HUMANA
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By analyzing existing cross correlation between AEP TEX INC and HUMANA INC 395, you can compare the effects of market volatilities on 00108WAF7 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 00108WAF7 with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and HUMANA.
Diversification Opportunities for 00108WAF7 and HUMANA
Good diversification
The 3 months correlation between 00108WAF7 and HUMANA is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and HUMANA INC 395 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC 5 and 00108WAF7 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 AEP TEX INC 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 5 has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and HUMANA go up and down completely randomly.
Pair Corralation between 00108WAF7 and HUMANA
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 8.47 times more return on investment than HUMANA. However, 00108WAF7 is 8.47 times more volatile than HUMANA INC 395. It trades about 0.2 of its potential returns per unit of risk. HUMANA INC 395 is currently generating about 0.07 per unit of risk. If you would invest 7,289 in AEP TEX INC on November 27, 2024 and sell it today you would earn a total of 250.00 from holding AEP TEX INC or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
AEP TEX INC vs. HUMANA INC 395
Performance |
| Timeline |
| AEP TEX INC |
| HUMANA INC 5 |
00108WAF7 and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and HUMANA
The main advantage of trading using opposite 00108WAF7 and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 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.| 00108WAF7 vs. ScanSource | 00108WAF7 vs. Vita Coco | 00108WAF7 vs. Ternium SA ADR | 00108WAF7 vs. Compania Cervecerias Unidas |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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