Correlation Between HUMANA and 00108WAF7
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By analyzing existing cross correlation between HUMANA INC 395 and AEP TEX INC, you can compare the effects of market volatilities on HUMANA and 00108WAF7 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 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and 00108WAF7.
Diversification Opportunities for HUMANA and 00108WAF7
Significant diversification
The 3 months correlation between HUMANA and 00108WAF7 is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC 395 and AEP TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEP TEX INC 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 00108WAF7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEP TEX INC has no effect on the direction of HUMANA i.e., HUMANA and 00108WAF7 go up and down completely randomly.
Pair Corralation between HUMANA and 00108WAF7
Assuming the 90 days trading horizon HUMANA INC 395 is expected to generate 0.07 times more return on investment than 00108WAF7. However, HUMANA INC 395 is 14.07 times less risky than 00108WAF7. It trades about -0.04 of its potential returns per unit of risk. AEP TEX INC is currently generating about -0.04 per unit of risk. If you would invest 9,790 in HUMANA INC 395 on September 1, 2024 and sell it today you would lose (29.00) from holding HUMANA INC 395 or give up 0.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 70.0% |
| Values | Daily Returns |
HUMANA INC 395 vs. AEP TEX INC
Performance |
| Timeline |
| HUMANA INC 5 |
| AEP TEX INC |
HUMANA and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and 00108WAF7
The main advantage of trading using opposite HUMANA and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, 00108WAF7 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 00108WAF7 will offset losses from the drop in 00108WAF7's long position.| HUMANA vs. MI Homes | HUMANA vs. Lifevantage | HUMANA vs. Cabo Drilling Corp | HUMANA vs. FitLife Brands, Common |
| 00108WAF7 vs. AKITA Drilling | 00108WAF7 vs. GameStop Corp | 00108WAF7 vs. Contagious Gaming | 00108WAF7 vs. Awilco Drilling PLC |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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