Correlation Between HUMANA and Costamare
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By analyzing existing cross correlation between HUMANA INC and Costamare, you can compare the effects of market volatilities on HUMANA and Costamare 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 Costamare. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Costamare.
Diversification Opportunities for HUMANA and Costamare
Very good diversification
The 3 months correlation between HUMANA and Costamare is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Costamare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Costamare 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 Costamare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Costamare has no effect on the direction of HUMANA i.e., HUMANA and Costamare go up and down completely randomly.
Pair Corralation between HUMANA and Costamare
Assuming the 90 days trading horizon HUMANA INC is expected to generate 63.14 times more return on investment than Costamare. However, HUMANA is 63.14 times more volatile than Costamare. It trades about 0.07 of its potential returns per unit of risk. Costamare is currently generating about 0.04 per unit of risk. If you would invest 7,962 in HUMANA INC on August 25, 2024 and sell it today you would earn a total of 73.00 from holding HUMANA INC or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.75% |
| Values | Daily Returns |
HUMANA INC vs. Costamare
Performance |
| Timeline |
| HUMANA INC |
| Costamare |
HUMANA and Costamare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Costamare
The main advantage of trading using opposite HUMANA and Costamare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Costamare 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 Costamare will offset losses from the drop in Costamare's long position.| HUMANA vs. Deluxe | HUMANA vs. Vita Coco | HUMANA vs. Willamette Valley Vineyards | HUMANA vs. Global E Online |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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