Correlation Between HUMANA and CreditRiskMonitorCom
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and CreditRiskMonitorCom, you can compare the effects of market volatilities on HUMANA and CreditRiskMonitorCom 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 CreditRiskMonitorCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and CreditRiskMonitorCom.
Diversification Opportunities for HUMANA and CreditRiskMonitorCom
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and CreditRiskMonitorCom is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and CreditRiskMonitorCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CreditRiskMonitorCom 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 CreditRiskMonitorCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CreditRiskMonitorCom has no effect on the direction of HUMANA i.e., HUMANA and CreditRiskMonitorCom go up and down completely randomly.
Pair Corralation between HUMANA and CreditRiskMonitorCom
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the CreditRiskMonitorCom. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 4.23 times less risky than CreditRiskMonitorCom. The bond trades about -0.16 of its potential returns per unit of risk. The CreditRiskMonitorCom is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 249.00 in CreditRiskMonitorCom on September 19, 2024 and sell it today you would earn a total of 50.00 from holding CreditRiskMonitorCom or generate 20.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.56% |
| Values | Daily Returns |
HUMANA INC vs. CreditRiskMonitorCom
Performance |
| Timeline |
| HUMANA INC |
| CreditRiskMonitorCom |
HUMANA and CreditRiskMonitorCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and CreditRiskMonitorCom
The main advantage of trading using opposite HUMANA and CreditRiskMonitorCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, CreditRiskMonitorCom 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 CreditRiskMonitorCom will offset losses from the drop in CreditRiskMonitorCom's long position.| HUMANA vs. MagnaChip Semiconductor | HUMANA vs. Oasis Hotel Resort | HUMANA vs. Sweetgreen | HUMANA vs. ON Semiconductor |
| CreditRiskMonitorCom vs. HUMANA INC | CreditRiskMonitorCom vs. Barloworld Ltd ADR | CreditRiskMonitorCom vs. Morningstar Unconstrained Allocation | CreditRiskMonitorCom vs. Thrivent High Yield |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |