Correlation Between HUMANA and Alliance Global
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By analyzing existing cross correlation between HUMANA INC and Alliance Global Group, you can compare the effects of market volatilities on HUMANA and Alliance Global 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 Alliance Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Alliance Global.
Diversification Opportunities for HUMANA and Alliance Global
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUMANA and Alliance is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Alliance Global Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliance Global 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 Alliance Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliance Global Group has no effect on the direction of HUMANA i.e., HUMANA and Alliance Global go up and down completely randomly.
Pair Corralation between HUMANA and Alliance Global
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.49 times more return on investment than Alliance Global. However, HUMANA INC is 2.06 times less risky than Alliance Global. It trades about -0.19 of its potential returns per unit of risk. Alliance Global Group is currently generating about -0.13 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUMANA INC vs. Alliance Global Group
Performance |
| Timeline |
| HUMANA INC |
| Alliance Global Group |
HUMANA and Alliance Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Alliance Global
The main advantage of trading using opposite HUMANA and Alliance Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Alliance Global 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 Alliance Global will offset losses from the drop in Alliance Global's long position.The idea behind HUMANA INC and Alliance Global 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.| Alliance Global vs. Arca Continental SAB | Alliance Global vs. Becle SA de | Alliance Global vs. Aquagold International | Alliance Global vs. Morningstar Unconstrained Allocation |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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