Correlation Between HUMANA and Bri Chem
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By analyzing existing cross correlation between HUMANA INC and Bri Chem Corp, you can compare the effects of market volatilities on HUMANA and Bri Chem 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 Bri Chem. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Bri Chem.
Diversification Opportunities for HUMANA and Bri Chem
Very weak diversification
The 3 months correlation between HUMANA and Bri is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Bri Chem Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bri Chem Corp 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 Bri Chem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bri Chem Corp has no effect on the direction of HUMANA i.e., HUMANA and Bri Chem go up and down completely randomly.
Pair Corralation between HUMANA and Bri Chem
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Bri Chem. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 6.93 times less risky than Bri Chem. The bond trades about -0.05 of its potential returns per unit of risk. The Bri Chem Corp is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Bri Chem Corp on September 3, 2024 and sell it today you would earn a total of 6.00 from holding Bri Chem Corp or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
HUMANA INC vs. Bri Chem Corp
Performance |
| Timeline |
| HUMANA INC |
| Bri Chem Corp |
HUMANA and Bri Chem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Bri Chem
The main advantage of trading using opposite HUMANA and Bri Chem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Bri Chem 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 Bri Chem will offset losses from the drop in Bri Chem's long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
| Bri Chem vs. TOMI Environmental Solutions | Bri Chem vs. SCOR PK | Bri Chem vs. HUMANA INC | Bri Chem vs. Aquagold International |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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