Correlation Between HUMANA and American Sierra
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and American Sierra Gold, you can compare the effects of market volatilities on HUMANA and American Sierra 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 Sierra. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and American Sierra.
Diversification Opportunities for HUMANA and American Sierra
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and American is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and American Sierra Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Sierra 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 American Sierra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Sierra Gold has no effect on the direction of HUMANA i.e., HUMANA and American Sierra go up and down completely randomly.
Pair Corralation between HUMANA and American Sierra
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the American Sierra. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 13.6 times less risky than American Sierra. The bond trades about -0.18 of its potential returns per unit of risk. The American Sierra Gold is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 0.50 in American Sierra Gold on September 2, 2024 and sell it today you would lose (0.10) from holding American Sierra Gold or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. American Sierra Gold
Performance |
| Timeline |
| HUMANA INC |
| American Sierra Gold |
HUMANA and American Sierra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and American Sierra
The main advantage of trading using opposite HUMANA and American Sierra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, American Sierra 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 Sierra will offset losses from the drop in American Sierra's long position.The idea behind HUMANA INC and American Sierra Gold 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.| American Sierra vs. Arctic Star Exploration | American Sierra vs. American Clean Resources | American Sierra vs. American Creek Resources | American Sierra vs. Arras Minerals Corp |
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.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |