Correlation Between HUMANA and Access Power
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By analyzing existing cross correlation between HUMANA INC and Access Power Co, you can compare the effects of market volatilities on HUMANA and Access Power 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 Access Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Access Power.
Diversification Opportunities for HUMANA and Access Power
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Access is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Access Power Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Access Power 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 Access Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Access Power has no effect on the direction of HUMANA i.e., HUMANA and Access Power go up and down completely randomly.
Pair Corralation between HUMANA and Access Power
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Access Power. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 31.99 times less risky than Access Power. The bond trades about -0.23 of its potential returns per unit of risk. The Access Power Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 0.16 in Access Power Co on August 24, 2024 and sell it today you would lose (0.08) from holding Access Power Co or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Access Power Co
Performance |
| Timeline |
| HUMANA INC |
| Access Power |
HUMANA and Access Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Access Power
The main advantage of trading using opposite HUMANA and Access Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Access Power 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 Access Power will offset losses from the drop in Access Power's long position.| HUMANA vs. Western Digital | HUMANA vs. Arrow Electronics | HUMANA vs. Anheuser Busch Inbev | HUMANA vs. Keurig Dr Pepper |
| Access Power vs. Boxlight Corp Class | Access Power vs. Siyata Mobile | Access Power vs. ClearOne | Access Power vs. HUMANA INC |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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