Correlation Between HUMANA and Auburn Bancorp
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By analyzing existing cross correlation between HUMANA INC and Auburn Bancorp, you can compare the effects of market volatilities on HUMANA and Auburn Bancorp 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 Auburn Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Auburn Bancorp.
Diversification Opportunities for HUMANA and Auburn Bancorp
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and Auburn is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Auburn Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auburn Bancorp 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 are associated (or correlated) with Auburn Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auburn Bancorp has no effect on the direction of HUMANA i.e., HUMANA and Auburn Bancorp go up and down completely randomly.
Pair Corralation between HUMANA and Auburn Bancorp
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Auburn Bancorp. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 2.43 times less risky than Auburn Bancorp. The bond trades about -0.18 of its potential returns per unit of risk. The Auburn Bancorp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 835.00 in Auburn Bancorp on September 14, 2024 and sell it today you would earn a total of 14.00 from holding Auburn Bancorp or generate 1.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUMANA INC vs. Auburn Bancorp
Performance |
| Timeline |
| HUMANA INC |
| Auburn Bancorp |
HUMANA and Auburn Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Auburn Bancorp
The main advantage of trading using opposite HUMANA and Auburn Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Auburn Bancorp 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 Auburn Bancorp will offset losses from the drop in Auburn Bancorp's long position.| HUMANA vs. Doubledown Interactive Co | HUMANA vs. Golden Matrix Group | HUMANA vs. Skechers USA | HUMANA vs. NetEase |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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