Correlation Between HUMANA and Becle SA
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By analyzing existing cross correlation between HUMANA INC and Becle SA de, you can compare the effects of market volatilities on HUMANA and Becle SA 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 Becle SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Becle SA.
Diversification Opportunities for HUMANA and Becle SA
Very weak diversification
The 3 months correlation between HUMANA and Becle is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Becle SA de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Becle SA de 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 Becle SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Becle SA de has no effect on the direction of HUMANA i.e., HUMANA and Becle SA go up and down completely randomly.
Pair Corralation between HUMANA and Becle SA
Assuming the 90 days trading horizon HUMANA INC is expected to generate 17.42 times more return on investment than Becle SA. However, HUMANA is 17.42 times more volatile than Becle SA de. It trades about 0.07 of its potential returns per unit of risk. Becle SA de is currently generating about 0.0 per unit of risk. If you would invest 8,074 in HUMANA INC on September 3, 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 | Moves Together |
| Strength | Weak |
| Accuracy | 93.74% |
| Values | Daily Returns |
HUMANA INC vs. Becle SA de
Performance |
| Timeline |
| HUMANA INC |
| Becle SA de |
HUMANA and Becle SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Becle SA
The main advantage of trading using opposite HUMANA and Becle SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Becle SA 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 Becle SA will offset losses from the drop in Becle SA's long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
| Becle SA vs. Aristocrat Group Corp | Becle SA vs. Iconic Brands | Becle SA vs. Naked Wines plc | Becle SA vs. Willamette Valley Vineyards |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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