Correlation Between HUMANA and AirIQ
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By analyzing existing cross correlation between HUMANA INC and AirIQ Inc, you can compare the effects of market volatilities on HUMANA and AirIQ 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 AirIQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and AirIQ.
Diversification Opportunities for HUMANA and AirIQ
Very weak diversification
The 3 months correlation between HUMANA and AirIQ is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and AirIQ Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AirIQ 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 are associated (or correlated) with AirIQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AirIQ Inc has no effect on the direction of HUMANA i.e., HUMANA and AirIQ go up and down completely randomly.
Pair Corralation between HUMANA and AirIQ
Assuming the 90 days trading horizon HUMANA INC is expected to generate 13.34 times more return on investment than AirIQ. However, HUMANA is 13.34 times more volatile than AirIQ Inc. It trades about 0.07 of its potential returns per unit of risk. AirIQ Inc is currently generating about 0.03 per unit of risk. If you would invest 8,074 in HUMANA INC on September 3, 2024 and sell it today you would lose (39.00) from holding HUMANA INC or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 93.55% |
| Values | Daily Returns |
HUMANA INC vs. AirIQ Inc
Performance |
| Timeline |
| HUMANA INC |
| AirIQ Inc |
HUMANA and AirIQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and AirIQ
The main advantage of trading using opposite HUMANA and AirIQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, AirIQ 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 AirIQ will offset losses from the drop in AirIQ's long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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