Correlation Between HUMANA and ATWEC Technologies
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By analyzing existing cross correlation between HUMANA INC and ATWEC Technologies, you can compare the effects of market volatilities on HUMANA and ATWEC Technologies 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 ATWEC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and ATWEC Technologies.
Diversification Opportunities for HUMANA and ATWEC Technologies
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and ATWEC is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and ATWEC Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATWEC Technologies 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 ATWEC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATWEC Technologies has no effect on the direction of HUMANA i.e., HUMANA and ATWEC Technologies go up and down completely randomly.
Pair Corralation between HUMANA and ATWEC Technologies
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.07 times more return on investment than ATWEC Technologies. However, HUMANA INC is 14.35 times less risky than ATWEC Technologies. It trades about -0.18 of its potential returns per unit of risk. ATWEC Technologies is currently generating about -0.09 per unit of risk. If you would invest 8,036 in HUMANA INC on September 2, 2024 and sell it today you would lose (341.00) from holding HUMANA INC or give up 4.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. ATWEC Technologies
Performance |
| Timeline |
| HUMANA INC |
| ATWEC Technologies |
HUMANA and ATWEC Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and ATWEC Technologies
The main advantage of trading using opposite HUMANA and ATWEC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, ATWEC Technologies 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 ATWEC Technologies will offset losses from the drop in ATWEC Technologies' long position.The idea behind HUMANA INC and ATWEC Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ATWEC Technologies vs. Allegion PLC | ATWEC Technologies vs. MSA Safety | ATWEC Technologies vs. HUMANA INC | ATWEC Technologies 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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