Correlation Between HUMANA and Alien Metals
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By analyzing existing cross correlation between HUMANA INC and Alien Metals, you can compare the effects of market volatilities on HUMANA and Alien Metals 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 Alien Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Alien Metals.
Diversification Opportunities for HUMANA and Alien Metals
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Alien is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Alien Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alien Metals 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 Alien Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alien Metals has no effect on the direction of HUMANA i.e., HUMANA and Alien Metals go up and down completely randomly.
Pair Corralation between HUMANA and Alien Metals
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Alien Metals. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 530.83 times less risky than Alien Metals. The bond trades about -0.11 of its potential returns per unit of risk. The Alien Metals is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 0.25 in Alien Metals on August 27, 2024 and sell it today you would lose (0.16) from holding Alien Metals or give up 64.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
HUMANA INC vs. Alien Metals
Performance |
| Timeline |
| HUMANA INC |
| Alien Metals |
HUMANA and Alien Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Alien Metals
The main advantage of trading using opposite HUMANA and Alien Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Alien Metals 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 Alien Metals will offset losses from the drop in Alien Metals' long position.| HUMANA vs. Ultra Clean Holdings | HUMANA vs. Dream Homes Development | HUMANA vs. JBG SMITH Properties | HUMANA vs. Allegheny Technologies Incorporated |
| Alien Metals vs. Morningstar Unconstrained Allocation | Alien Metals vs. High Yield Municipal Fund | Alien Metals vs. Knife River | Alien Metals vs. Klckner Co SE |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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