Correlation Between HUMANA and Big Ridge
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By analyzing existing cross correlation between HUMANA INC and Big Ridge Gold, you can compare the effects of market volatilities on HUMANA and Big Ridge 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 Big Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Big Ridge.
Diversification Opportunities for HUMANA and Big Ridge
Excellent diversification
The 3 months correlation between HUMANA and Big is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Big Ridge Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big Ridge Gold 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 Big Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big Ridge Gold has no effect on the direction of HUMANA i.e., HUMANA and Big Ridge go up and down completely randomly.
Pair Corralation between HUMANA and Big Ridge
Assuming the 90 days trading horizon HUMANA INC is expected to generate 8.31 times more return on investment than Big Ridge. However, HUMANA is 8.31 times more volatile than Big Ridge Gold. It trades about 0.07 of its potential returns per unit of risk. Big Ridge Gold is currently generating about 0.05 per unit of risk. If you would invest 7,840 in HUMANA INC on September 13, 2024 and sell it today you would lose (145.00) from holding HUMANA INC or give up 1.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.74% |
| Values | Daily Returns |
HUMANA INC vs. Big Ridge Gold
Performance |
| Timeline |
| HUMANA INC |
| Big Ridge Gold |
HUMANA and Big Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Big Ridge
The main advantage of trading using opposite HUMANA and Big Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Big Ridge 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 Big Ridge will offset losses from the drop in Big Ridge's long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
| Big Ridge vs. Minnova Corp | Big Ridge vs. Argo Gold | Big Ridge vs. Advance Gold Corp | Big Ridge vs. Blue Star Gold |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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