Correlation Between HUMANA and Character Group
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By analyzing existing cross correlation between HUMANA INC and The Character Group, you can compare the effects of market volatilities on HUMANA and Character Group 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 Character Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Character Group.
Diversification Opportunities for HUMANA and Character Group
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Character is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and The Character Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Character Group 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 Character Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Character Group has no effect on the direction of HUMANA i.e., HUMANA and Character Group go up and down completely randomly.
Pair Corralation between HUMANA and Character Group
Assuming the 90 days trading horizon HUMANA INC is expected to generate 38.26 times more return on investment than Character Group. However, HUMANA is 38.26 times more volatile than The Character Group. It trades about 0.08 of its potential returns per unit of risk. The Character Group is currently generating about -0.05 per unit of risk. If you would invest 8,039 in HUMANA INC on August 27, 2024 and sell it today you would lose (4.00) from holding HUMANA INC or give up 0.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.29% |
| Values | Daily Returns |
HUMANA INC vs. The Character Group
Performance |
| Timeline |
| HUMANA INC |
| Character Group |
HUMANA and Character Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Character Group
The main advantage of trading using opposite HUMANA and Character Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Character Group 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 Character Group will offset losses from the drop in Character Group's long position.| HUMANA vs. Ultra Clean Holdings | HUMANA vs. Dream Homes Development | HUMANA vs. JBG SMITH Properties | HUMANA vs. Allegheny Technologies Incorporated |
| Character Group vs. HUMANA INC | Character Group vs. Aquagold International | Character Group vs. Barloworld Ltd ADR | Character Group vs. Morningstar Unconstrained Allocation |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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