Correlation Between HUMANA and Arko Corp
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By analyzing existing cross correlation between HUMANA INC and Arko Corp, you can compare the effects of market volatilities on HUMANA and Arko Corp 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 Arko Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Arko Corp.
Diversification Opportunities for HUMANA and Arko Corp
Excellent diversification
The 3 months correlation between HUMANA and Arko is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Arko Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arko Corp 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 Arko Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arko Corp has no effect on the direction of HUMANA i.e., HUMANA and Arko Corp go up and down completely randomly.
Pair Corralation between HUMANA and Arko Corp
Assuming the 90 days trading horizon HUMANA INC is expected to generate 32.34 times more return on investment than Arko Corp. However, HUMANA is 32.34 times more volatile than Arko Corp. It trades about 0.07 of its potential returns per unit of risk. Arko Corp is currently generating about -0.01 per unit of risk. If you would invest 8,033 in HUMANA INC on August 23, 2024 and sell it today you would earn a total of 2.00 from holding HUMANA INC or generate 0.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.75% |
| Values | Daily Returns |
HUMANA INC vs. Arko Corp
Performance |
| Timeline |
| HUMANA INC |
| Arko Corp |
HUMANA and Arko Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Arko Corp
The main advantage of trading using opposite HUMANA and Arko Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Arko Corp 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 Arko Corp will offset losses from the drop in Arko Corp's long position.| HUMANA vs. Western Digital | HUMANA vs. Arrow Electronics | HUMANA vs. Anheuser Busch Inbev | HUMANA vs. Keurig Dr Pepper |
| Arko Corp vs. Murphy USA | Arko Corp vs. National Vision Holdings | Arko Corp vs. ODP Corp | Arko Corp vs. Genuine Parts Co |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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