Correlation Between HUMANA and Bats Series
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By analyzing existing cross correlation between HUMANA INC and Bats Series C, you can compare the effects of market volatilities on HUMANA and Bats Series 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 Bats Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Bats Series.
Diversification Opportunities for HUMANA and Bats Series
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Bats is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Bats Series C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bats Series C 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 Bats Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bats Series C has no effect on the direction of HUMANA i.e., HUMANA and Bats Series go up and down completely randomly.
Pair Corralation between HUMANA and Bats Series
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Bats Series. In addition to that, HUMANA is 1.47 times more volatile than Bats Series C. It trades about -0.07 of its total potential returns per unit of risk. Bats Series C is currently generating about 0.07 per unit of volatility. If you would invest 901.00 in Bats Series C on August 29, 2024 and sell it today you would earn a total of 6.00 from holding Bats Series C or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
HUMANA INC vs. Bats Series C
Performance |
| Timeline |
| HUMANA INC |
| Bats Series C |
HUMANA and Bats Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Bats Series
The main advantage of trading using opposite HUMANA and Bats Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Bats Series 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 Bats Series will offset losses from the drop in Bats Series' long position.The idea behind HUMANA INC and Bats Series C 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.| Bats Series vs. HUMANA INC | Bats Series vs. Aquagold International | Bats Series vs. Barloworld Ltd ADR | Bats Series vs. Morningstar Unconstrained Allocation |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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