Correlation Between HUMANA and Aecon
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Aecon Group, you can compare the effects of market volatilities on HUMANA and Aecon 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 Aecon. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Aecon.
Diversification Opportunities for HUMANA and Aecon
Very good diversification
The 3 months correlation between HUMANA and Aecon is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Aecon Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aecon Group 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 Aecon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aecon Group has no effect on the direction of HUMANA i.e., HUMANA and Aecon go up and down completely randomly.
Pair Corralation between HUMANA and Aecon
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.61 times more return on investment than Aecon. However, HUMANA INC is 1.64 times less risky than Aecon. It trades about -0.19 of its potential returns per unit of risk. Aecon Group is currently generating about -0.17 per unit of risk. If you would invest 8,064 in HUMANA INC on September 12, 2024 and sell it today you would lose (369.00) from holding HUMANA INC or give up 4.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Aecon Group
Performance |
| Timeline |
| HUMANA INC |
| Aecon Group |
HUMANA and Aecon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Aecon
The main advantage of trading using opposite HUMANA and Aecon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Aecon 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 Aecon will offset losses from the drop in Aecon's long position.The idea behind HUMANA INC and Aecon Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Aecon vs. HUMANA INC | Aecon vs. Barloworld Ltd ADR | Aecon vs. Morningstar Unconstrained Allocation | Aecon vs. Thrivent High Yield |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |