Correlation Between HUMANA and Oak Ridge
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By analyzing existing cross correlation between HUMANA INC and Oak Ridge Financial, you can compare the effects of market volatilities on HUMANA and Oak Ridge 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 Oak Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Oak Ridge.
Diversification Opportunities for HUMANA and Oak Ridge
Excellent diversification
The 3 months correlation between HUMANA and Oak is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Oak Ridge Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oak Ridge Financial 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 Oak Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oak Ridge Financial has no effect on the direction of HUMANA i.e., HUMANA and Oak Ridge go up and down completely randomly.
Pair Corralation between HUMANA and Oak Ridge
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Oak Ridge. In addition to that, HUMANA is 1.32 times more volatile than Oak Ridge Financial. It trades about -0.21 of its total potential returns per unit of risk. Oak Ridge Financial is currently generating about 0.41 per unit of volatility. If you would invest 1,918 in Oak Ridge Financial on September 1, 2024 and sell it today you would earn a total of 157.00 from holding Oak Ridge Financial or generate 8.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Oak Ridge Financial
Performance |
| Timeline |
| HUMANA INC |
| Oak Ridge Financial |
HUMANA and Oak Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Oak Ridge
The main advantage of trading using opposite HUMANA and Oak Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Oak Ridge 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 Oak Ridge will offset losses from the drop in Oak Ridge's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Oak Ridge vs. HUMANA INC | Oak Ridge vs. SCOR PK | Oak Ridge vs. Aquagold International | Oak Ridge vs. Thrivent High Yield |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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