Correlation Between HUMANA and Affiliated Resources
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By analyzing existing cross correlation between HUMANA INC and Affiliated Resources Corp, you can compare the effects of market volatilities on HUMANA and Affiliated Resources 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 Affiliated Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Affiliated Resources.
Diversification Opportunities for HUMANA and Affiliated Resources
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and Affiliated is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Affiliated Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affiliated Resources Corp 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 Affiliated Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affiliated Resources Corp has no effect on the direction of HUMANA i.e., HUMANA and Affiliated Resources go up and down completely randomly.
Pair Corralation between HUMANA and Affiliated Resources
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Affiliated Resources. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 3.36 times less risky than Affiliated Resources. The bond trades about -0.19 of its potential returns per unit of risk. The Affiliated Resources Corp is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 9.50 in Affiliated Resources Corp on September 13, 2024 and sell it today you would lose (0.55) from holding Affiliated Resources Corp or give up 5.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Affiliated Resources Corp
Performance |
| Timeline |
| HUMANA INC |
| Affiliated Resources Corp |
HUMANA and Affiliated Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Affiliated Resources
The main advantage of trading using opposite HUMANA and Affiliated Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Affiliated Resources 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 Affiliated Resources will offset losses from the drop in Affiliated Resources' long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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