Correlation Between HUMANA and American Business
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By analyzing existing cross correlation between HUMANA INC and American Business Bk, you can compare the effects of market volatilities on HUMANA and American Business 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 American Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and American Business.
Diversification Opportunities for HUMANA and American Business
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and American is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and American Business Bk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Business 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 American Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Business has no effect on the direction of HUMANA i.e., HUMANA and American Business go up and down completely randomly.
Pair Corralation between HUMANA and American Business
If you would invest 0.00 in American Business Bk on September 19, 2024 and sell it today you would earn a total of 0.00 from holding American Business Bk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
HUMANA INC vs. American Business Bk
Performance |
| Timeline |
| HUMANA INC |
| American Business |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Strong
HUMANA and American Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and American Business
The main advantage of trading using opposite HUMANA and American Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, American Business 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 American Business will offset losses from the drop in American Business' long position.| HUMANA vs. Anheuser Busch Inbev | HUMANA vs. Vita Coco | HUMANA vs. Compania Cervecerias Unidas | HUMANA vs. Westinghouse Air Brake |
| American Business vs. American Riviera Bank | American Business vs. Southern California Bancorp | American Business vs. North Dallas Bank | American Business vs. Citizens Bancorp Investment |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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