Correlation Between HUMANA and Carbon Energy
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By analyzing existing cross correlation between HUMANA INC and Carbon Energy, you can compare the effects of market volatilities on HUMANA and Carbon 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 Carbon Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Carbon Energy.
Diversification Opportunities for HUMANA and Carbon Energy
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Carbon is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Carbon Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carbon Energy 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 Carbon Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carbon Energy has no effect on the direction of HUMANA i.e., HUMANA and Carbon Energy go up and down completely randomly.
Pair Corralation between HUMANA and Carbon Energy
If you would invest 25.00 in Carbon Energy on August 23, 2024 and sell it today you would earn a total of 0.00 from holding Carbon Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
HUMANA INC vs. Carbon Energy
Performance |
| Timeline |
| HUMANA INC |
| Carbon Energy |
HUMANA and Carbon Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Carbon Energy
The main advantage of trading using opposite HUMANA and Carbon Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Carbon 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 Carbon Energy will offset losses from the drop in Carbon Energy's long position.| HUMANA vs. Western Digital | HUMANA vs. Arrow Electronics | HUMANA vs. Anheuser Busch Inbev | HUMANA vs. Keurig Dr Pepper |
| Carbon Energy vs. East Africa Metals | Carbon Energy vs. ABIVAX Socit Anonyme | Carbon Energy vs. SCOR PK | Carbon Energy vs. HUMANA INC |
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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