Correlation Between HUMANA and Croda International
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By analyzing existing cross correlation between HUMANA INC and Croda International PLC, you can compare the effects of market volatilities on HUMANA and Croda International 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 Croda International. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Croda International.
Diversification Opportunities for HUMANA and Croda International
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Croda is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Croda International PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Croda International PLC 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 Croda International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Croda International PLC has no effect on the direction of HUMANA i.e., HUMANA and Croda International go up and down completely randomly.
Pair Corralation between HUMANA and Croda International
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.29 times more return on investment than Croda International. However, HUMANA INC is 3.46 times less risky than Croda International. It trades about 0.02 of its potential returns per unit of risk. Croda International PLC is currently generating about -0.03 per unit of risk. If you would invest 7,884 in HUMANA INC on August 25, 2024 and sell it today you would earn a total of 151.00 from holding HUMANA INC or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.2% |
| Values | Daily Returns |
HUMANA INC vs. Croda International PLC
Performance |
| Timeline |
| HUMANA INC |
| Croda International PLC |
HUMANA and Croda International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Croda International
The main advantage of trading using opposite HUMANA and Croda International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Croda International 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 Croda International will offset losses from the drop in Croda International's long position.| HUMANA vs. Deluxe | HUMANA vs. Vita Coco | HUMANA vs. Willamette Valley Vineyards | HUMANA vs. Global E Online |
| Croda International vs. First Graphene | Croda International vs. HUMANA INC | Croda International vs. Aquagold International | Croda International vs. Barloworld Ltd ADR |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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