Correlation Between HUMANA and Arista Power
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Arista Power, you can compare the effects of market volatilities on HUMANA and Arista Power 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 Arista Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Arista Power.
Diversification Opportunities for HUMANA and Arista Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Arista is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Arista Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arista Power 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 Arista Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arista Power has no effect on the direction of HUMANA i.e., HUMANA and Arista Power go up and down completely randomly.
Pair Corralation between HUMANA and Arista Power
Assuming the 90 days trading horizon HUMANA INC is expected to generate 16.04 times more return on investment than Arista Power. However, HUMANA is 16.04 times more volatile than Arista Power. It trades about 0.07 of its potential returns per unit of risk. Arista Power is currently generating about 0.02 per unit of risk. If you would invest 8,074 in HUMANA INC on September 4, 2024 and sell it today you would lose (39.00) from holding HUMANA INC or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 93.72% |
| Values | Daily Returns |
HUMANA INC vs. Arista Power
Performance |
| Timeline |
| HUMANA INC |
| Arista Power |
HUMANA and Arista Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Arista Power
The main advantage of trading using opposite HUMANA and Arista Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Arista Power 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 Arista Power will offset losses from the drop in Arista Power's long position.| HUMANA vs. Usio Inc | HUMANA vs. MACOM Technology Solutions | HUMANA vs. Amkor Technology | HUMANA vs. Analog Devices |
| Arista Power vs. Aumann AG | Arista Power vs. Alfa Laval AB | Arista Power vs. Atlas Copco AB | Arista Power vs. American Commerce Solutions |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |