Correlation Between HUMANA and Noble Plc
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By analyzing existing cross correlation between HUMANA INC 395 and Noble plc, you can compare the effects of market volatilities on HUMANA and Noble Plc 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 HUMANA with a short position of Noble Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Noble Plc.
Diversification Opportunities for HUMANA and Noble Plc
Modest diversification
The 3 months correlation between HUMANA and Noble is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC 395 and Noble plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Noble plc and HUMANA 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 HUMANA INC 395 are associated (or correlated) with Noble Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Noble plc has no effect on the direction of HUMANA i.e., HUMANA and Noble Plc go up and down completely randomly.
Pair Corralation between HUMANA and Noble Plc
Assuming the 90 days trading horizon HUMANA INC 395 is expected to under-perform the Noble Plc. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC 395 is 9.31 times less risky than Noble Plc. The bond trades about -0.04 of its potential returns per unit of risk. The Noble plc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,198 in Noble plc on September 1, 2024 and sell it today you would earn a total of 149.00 from holding Noble plc or generate 4.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC 395 vs. Noble plc
Performance |
| Timeline |
| HUMANA INC 5 |
| Noble plc |
HUMANA and Noble Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Noble Plc
The main advantage of trading using opposite HUMANA and Noble Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Noble Plc 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 Noble Plc will offset losses from the drop in Noble Plc's long position.| HUMANA vs. MI Homes | HUMANA vs. Lifevantage | HUMANA vs. Cabo Drilling Corp | HUMANA vs. FitLife Brands, Common |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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