Correlation Between HUMANA and Bald Eagle
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By analyzing existing cross correlation between HUMANA INC and Bald Eagle Gold, you can compare the effects of market volatilities on HUMANA and Bald Eagle 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 Bald Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Bald Eagle.
Diversification Opportunities for HUMANA and Bald Eagle
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Bald is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Bald Eagle Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bald Eagle Gold 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 Bald Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bald Eagle Gold has no effect on the direction of HUMANA i.e., HUMANA and Bald Eagle go up and down completely randomly.
Pair Corralation between HUMANA and Bald Eagle
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Bald Eagle. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 3.25 times less risky than Bald Eagle. The bond trades about -0.18 of its potential returns per unit of risk. The Bald Eagle Gold is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 40.00 in Bald Eagle Gold on September 2, 2024 and sell it today you would earn a total of 1.00 from holding Bald Eagle Gold or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Bald Eagle Gold
Performance |
| Timeline |
| HUMANA INC |
| Bald Eagle Gold |
HUMANA and Bald Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Bald Eagle
The main advantage of trading using opposite HUMANA and Bald Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Bald Eagle 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 Bald Eagle will offset losses from the drop in Bald Eagle's long position.The idea behind HUMANA INC and Bald Eagle Gold 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.| Bald Eagle vs. Andean Precious Metals | Bald Eagle vs. Apollo Silver Corp | Bald Eagle vs. Silver Hammer Mining | Bald Eagle vs. Guanajuato Silver |
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 CEOs Directory module to screen CEOs from public companies around the world.
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