Correlation Between HUMANA and Constellation Energy
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By analyzing existing cross correlation between HUMANA INC and Constellation Energy Corp, you can compare the effects of market volatilities on HUMANA and Constellation Energy 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 Constellation Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Constellation Energy.
Diversification Opportunities for HUMANA and Constellation Energy
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Constellation is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Constellation Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Constellation Energy 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 Constellation Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Constellation Energy Corp has no effect on the direction of HUMANA i.e., HUMANA and Constellation Energy go up and down completely randomly.
Pair Corralation between HUMANA and Constellation Energy
Assuming the 90 days trading horizon HUMANA INC is expected to generate 30.64 times more return on investment than Constellation Energy. However, HUMANA is 30.64 times more volatile than Constellation Energy Corp. It trades about 0.07 of its potential returns per unit of risk. Constellation Energy Corp is currently generating about 0.09 per unit of risk. If you would invest 8,012 in HUMANA INC on August 31, 2024 and sell it today you would lose (317.00) from holding HUMANA INC or give up 3.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.94% |
| Values | Daily Returns |
HUMANA INC vs. Constellation Energy Corp
Performance |
| Timeline |
| HUMANA INC |
| Constellation Energy Corp |
HUMANA and Constellation Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Constellation Energy
The main advantage of trading using opposite HUMANA and Constellation Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Constellation Energy 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 Constellation Energy will offset losses from the drop in Constellation Energy's long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
| Constellation Energy vs. Atlantica Sustainable Infrastructure | Constellation Energy vs. Clearway Energy | Constellation Energy vs. Brookfield Renewable Corp | Constellation Energy vs. Nextera Energy Partners |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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