Correlation Between HUMANA and Bell Copper
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By analyzing existing cross correlation between HUMANA INC and Bell Copper, you can compare the effects of market volatilities on HUMANA and Bell Copper 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 Bell Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Bell Copper.
Diversification Opportunities for HUMANA and Bell Copper
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Bell is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Bell Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bell Copper 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 Bell Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bell Copper has no effect on the direction of HUMANA i.e., HUMANA and Bell Copper go up and down completely randomly.
Pair Corralation between HUMANA and Bell Copper
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.11 times more return on investment than Bell Copper. However, HUMANA INC is 8.84 times less risky than Bell Copper. It trades about -0.21 of its potential returns per unit of risk. Bell Copper is currently generating about -0.03 per unit of risk. If you would invest 8,088 in HUMANA INC on September 1, 2024 and sell it today you would lose (393.00) from holding HUMANA INC or give up 4.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Bell Copper
Performance |
| Timeline |
| HUMANA INC |
| Bell Copper |
HUMANA and Bell Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Bell Copper
The main advantage of trading using opposite HUMANA and Bell Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Bell Copper 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 Bell Copper will offset losses from the drop in Bell Copper's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Bell Copper vs. South32 Limited | Bell Copper vs. NioCorp Developments Ltd | Bell Copper vs. HUMANA INC | Bell Copper vs. SCOR PK |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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