Correlation Between HUMANA and Sterling Capital
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By analyzing existing cross correlation between HUMANA INC and Sterling Capital South, you can compare the effects of market volatilities on HUMANA and Sterling Capital 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 Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Sterling Capital.
Diversification Opportunities for HUMANA and Sterling Capital
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and Sterling is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Sterling Capital South in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital South 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 Sterling Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Capital South has no effect on the direction of HUMANA i.e., HUMANA and Sterling Capital go up and down completely randomly.
Pair Corralation between HUMANA and Sterling Capital
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Sterling Capital. In addition to that, HUMANA is 4.32 times more volatile than Sterling Capital South. It trades about -0.04 of its total potential returns per unit of risk. Sterling Capital South is currently generating about 0.13 per unit of volatility. If you would invest 1,021 in Sterling Capital South on September 1, 2024 and sell it today you would earn a total of 28.00 from holding Sterling Capital South or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.64% |
| Values | Daily Returns |
HUMANA INC vs. Sterling Capital South
Performance |
| Timeline |
| HUMANA INC |
| Sterling Capital South |
HUMANA and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Sterling Capital
The main advantage of trading using opposite HUMANA and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Sterling Capital 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 Sterling Capital will offset losses from the drop in Sterling Capital's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Sterling Capital vs. Sterling Capital Equity | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital Behavioral |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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