Correlation Between HUMANA and Bayport International
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By analyzing existing cross correlation between HUMANA INC and Bayport International Holdings, you can compare the effects of market volatilities on HUMANA and Bayport International 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 Bayport International. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Bayport International.
Diversification Opportunities for HUMANA and Bayport International
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUMANA and Bayport is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Bayport International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayport International 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 Bayport International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayport International has no effect on the direction of HUMANA i.e., HUMANA and Bayport International go up and down completely randomly.
Pair Corralation between HUMANA and Bayport International
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.1 times more return on investment than Bayport International. However, HUMANA INC is 10.24 times less risky than Bayport International. It trades about -0.15 of its potential returns per unit of risk. Bayport International Holdings is currently generating about -0.12 per unit of risk. If you would invest 8,325 in HUMANA INC on September 2, 2024 and sell it today you would lose (630.00) from holding HUMANA INC or give up 7.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.92% |
| Values | Daily Returns |
HUMANA INC vs. Bayport International Holdings
Performance |
| Timeline |
| HUMANA INC |
| Bayport International |
HUMANA and Bayport International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Bayport International
The main advantage of trading using opposite HUMANA and Bayport International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Bayport International 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 Bayport International will offset losses from the drop in Bayport International's long position.The idea behind HUMANA INC and Bayport International Holdings 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.| Bayport International vs. Hong Kong Land | Bayport International vs. Wharf Holdings | Bayport International vs. Holiday Island Holdings | Bayport International vs. Sun Hung Kai |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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