Correlation Between HUMANA and Sterling Capital
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By analyzing existing cross correlation between HUMANA INC and Sterling Capital Short, 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
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Sterling is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Sterling Capital Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Short 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 Short 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 7.9 times more volatile than Sterling Capital Short. It trades about -0.09 of its total potential returns per unit of risk. Sterling Capital Short is currently generating about 0.2 per unit of volatility. If you would invest 833.00 in Sterling Capital Short on November 27, 2024 and sell it today you would earn a total of 4.00 from holding Sterling Capital Short or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Sterling Capital Short
Performance |
| Timeline |
| HUMANA INC |
| Sterling Capital Short |
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. Amkor Technology | HUMANA vs. Primo Brands | HUMANA vs. The Coca Cola | HUMANA vs. Brandywine Realty Trust |
| Sterling Capital vs. World Precious Minerals | Sterling Capital vs. Global Gold Fund | Sterling Capital vs. Investment Managers Series | Sterling Capital vs. Deutsche Gold Precious |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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