Correlation Between HUMANA and Euronav NV
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By analyzing existing cross correlation between HUMANA INC and Euronav NV, you can compare the effects of market volatilities on HUMANA and Euronav NV 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 Euronav NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Euronav NV.
Diversification Opportunities for HUMANA and Euronav NV
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and Euronav is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Euronav NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euronav NV 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 Euronav NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euronav NV has no effect on the direction of HUMANA i.e., HUMANA and Euronav NV go up and down completely randomly.
Pair Corralation between HUMANA and Euronav NV
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.3 times more return on investment than Euronav NV. However, HUMANA INC is 3.34 times less risky than Euronav NV. It trades about 0.01 of its potential returns per unit of risk. Euronav NV is currently generating about -0.02 per unit of risk. If you would invest 7,937 in HUMANA INC on September 4, 2024 and sell it today you would earn a total of 98.00 from holding HUMANA INC or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.17% |
| Values | Daily Returns |
HUMANA INC vs. Euronav NV
Performance |
| Timeline |
| HUMANA INC |
| Euronav NV |
HUMANA and Euronav NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Euronav NV
The main advantage of trading using opposite HUMANA and Euronav NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Euronav NV 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 Euronav NV will offset losses from the drop in Euronav NV's long position.| HUMANA vs. Usio Inc | HUMANA vs. MACOM Technology Solutions | HUMANA vs. Amkor Technology | HUMANA vs. Analog Devices |
| Euronav NV vs. Natural Alternatives International | Euronav NV vs. Cincinnati Financial | Euronav NV vs. ICC Holdings | Euronav NV vs. Marfrig Global Foods |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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