Correlation Between HUMANA and ArcelorMittal
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By analyzing existing cross correlation between HUMANA INC and ArcelorMittal SA, you can compare the effects of market volatilities on HUMANA and ArcelorMittal 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 ArcelorMittal. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and ArcelorMittal.
Diversification Opportunities for HUMANA and ArcelorMittal
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and ArcelorMittal is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and ArcelorMittal SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ArcelorMittal SA 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 ArcelorMittal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ArcelorMittal SA has no effect on the direction of HUMANA i.e., HUMANA and ArcelorMittal go up and down completely randomly.
Pair Corralation between HUMANA and ArcelorMittal
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the ArcelorMittal. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 2.91 times less risky than ArcelorMittal. The bond trades about -0.12 of its potential returns per unit of risk. The ArcelorMittal SA is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,150 in ArcelorMittal SA on August 24, 2024 and sell it today you would earn a total of 360.00 from holding ArcelorMittal SA or generate 16.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.8% |
| Values | Daily Returns |
HUMANA INC vs. ArcelorMittal SA
Performance |
| Timeline |
| HUMANA INC |
| ArcelorMittal SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
HUMANA and ArcelorMittal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and ArcelorMittal
The main advantage of trading using opposite HUMANA and ArcelorMittal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, ArcelorMittal 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 ArcelorMittal will offset losses from the drop in ArcelorMittal's long position.| HUMANA vs. Drilling Tools International | HUMANA vs. Delek Drilling | HUMANA vs. Vera Bradley | HUMANA vs. Duluth Holdings |
| ArcelorMittal vs. Acerinox SA ADR | ArcelorMittal vs. Algoma Steel Group | ArcelorMittal vs. Synalloy | ArcelorMittal vs. Algoma Steel Group |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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