Correlation Between HUMANA and Atlas Copco
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By analyzing existing cross correlation between HUMANA INC and Atlas Copco ADR, you can compare the effects of market volatilities on HUMANA and Atlas Copco 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 Atlas Copco. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Atlas Copco.
Diversification Opportunities for HUMANA and Atlas Copco
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and Atlas is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Atlas Copco ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Copco ADR 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 Atlas Copco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Copco ADR has no effect on the direction of HUMANA i.e., HUMANA and Atlas Copco go up and down completely randomly.
Pair Corralation between HUMANA and Atlas Copco
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.34 times more return on investment than Atlas Copco. However, HUMANA INC is 2.96 times less risky than Atlas Copco. It trades about 0.01 of its potential returns per unit of risk. Atlas Copco ADR is currently generating about -0.07 per unit of risk. If you would invest 8,014 in HUMANA INC on September 3, 2024 and sell it today you would earn a total of 21.00 from holding HUMANA INC or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.6% |
| Values | Daily Returns |
HUMANA INC vs. Atlas Copco ADR
Performance |
| Timeline |
| HUMANA INC |
| Atlas Copco ADR |
HUMANA and Atlas Copco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Atlas Copco
The main advantage of trading using opposite HUMANA and Atlas Copco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Atlas Copco 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 Atlas Copco will offset losses from the drop in Atlas Copco's long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
| Atlas Copco vs. TOMI Environmental Solutions | Atlas Copco vs. SCOR PK | Atlas Copco vs. HUMANA INC | Atlas Copco vs. Aquagold International |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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