Correlation Between HUMANA and CEA Industries
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and CEA Industries Warrant, you can compare the effects of market volatilities on HUMANA and CEA Industries 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 CEA Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and CEA Industries.
Diversification Opportunities for HUMANA and CEA Industries
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and CEA is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and CEA Industries Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEA Industries Warrant 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 CEA Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEA Industries Warrant has no effect on the direction of HUMANA i.e., HUMANA and CEA Industries go up and down completely randomly.
Pair Corralation between HUMANA and CEA Industries
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the CEA Industries. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 25.25 times less risky than CEA Industries. The bond trades about -0.18 of its potential returns per unit of risk. The CEA Industries Warrant is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 0.87 in CEA Industries Warrant on September 2, 2024 and sell it today you would lose (0.08) from holding CEA Industries Warrant or give up 9.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 20.0% |
| Values | Daily Returns |
HUMANA INC vs. CEA Industries Warrant
Performance |
| Timeline |
| HUMANA INC |
| CEA Industries Warrant |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
HUMANA and CEA Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and CEA Industries
The main advantage of trading using opposite HUMANA and CEA Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, CEA Industries 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 CEA Industries will offset losses from the drop in CEA Industries' long position.The idea behind HUMANA INC and CEA Industries Warrant 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.| CEA Industries vs. Nikola Corp | CEA Industries vs. Wabash National | CEA Industries vs. Titan International | CEA Industries vs. Deere Company |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |