Correlation Between HUMANA and Cabral Gold
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By analyzing existing cross correlation between HUMANA INC and Cabral Gold, you can compare the effects of market volatilities on HUMANA and Cabral Gold 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 Cabral Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Cabral Gold.
Diversification Opportunities for HUMANA and Cabral Gold
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUMANA and Cabral is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Cabral Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabral Gold 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 Cabral Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabral Gold has no effect on the direction of HUMANA i.e., HUMANA and Cabral Gold go up and down completely randomly.
Pair Corralation between HUMANA and Cabral Gold
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.11 times more return on investment than Cabral Gold. However, HUMANA INC is 9.52 times less risky than Cabral Gold. It trades about -0.16 of its potential returns per unit of risk. Cabral Gold is currently generating about -0.1 per unit of risk. If you would invest 8,133 in HUMANA INC on September 19, 2024 and sell it today you would lose (438.00) from holding HUMANA INC or give up 5.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.56% |
| Values | Daily Returns |
HUMANA INC vs. Cabral Gold
Performance |
| Timeline |
| HUMANA INC |
| Cabral Gold |
HUMANA and Cabral Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Cabral Gold
The main advantage of trading using opposite HUMANA and Cabral Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Cabral Gold 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 Cabral Gold will offset losses from the drop in Cabral Gold's long position.| HUMANA vs. MagnaChip Semiconductor | HUMANA vs. Oasis Hotel Resort | HUMANA vs. Sweetgreen | HUMANA vs. ON Semiconductor |
| Cabral Gold vs. Galiano Gold | Cabral Gold vs. US Gold Corp | Cabral Gold vs. HUMANA INC | Cabral Gold vs. Barloworld Ltd ADR |
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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