Correlation Between HUMANA and Maxwell Resource
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By analyzing existing cross correlation between HUMANA INC and Maxwell Resource, you can compare the effects of market volatilities on HUMANA and Maxwell Resource 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 Maxwell Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Maxwell Resource.
Diversification Opportunities for HUMANA and Maxwell Resource
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Maxwell is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Maxwell Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxwell Resource 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 Maxwell Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxwell Resource has no effect on the direction of HUMANA i.e., HUMANA and Maxwell Resource go up and down completely randomly.
Pair Corralation between HUMANA and Maxwell Resource
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Maxwell Resource. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 33.58 times less risky than Maxwell Resource. The bond trades about -0.21 of its potential returns per unit of risk. The Maxwell Resource is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.20 in Maxwell Resource on August 31, 2024 and sell it today you would lose (0.08) from holding Maxwell Resource or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
HUMANA INC vs. Maxwell Resource
Performance |
| Timeline |
| HUMANA INC |
| Maxwell Resource |
HUMANA and Maxwell Resource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Maxwell Resource
The main advantage of trading using opposite HUMANA and Maxwell Resource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Maxwell Resource 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 Maxwell Resource will offset losses from the drop in Maxwell Resource's long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
| Maxwell Resource vs. BCE Inc | Maxwell Resource vs. Axiologix | Maxwell Resource vs. Advanced Info Service | Maxwell Resource vs. HUMANA INC |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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