Correlation Between HUMANA and Defiance Silver
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By analyzing existing cross correlation between HUMANA INC and Defiance Silver Corp, you can compare the effects of market volatilities on HUMANA and Defiance Silver 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 Defiance Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Defiance Silver.
Diversification Opportunities for HUMANA and Defiance Silver
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and Defiance is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Defiance Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Defiance Silver Corp 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 Defiance Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Defiance Silver Corp has no effect on the direction of HUMANA i.e., HUMANA and Defiance Silver go up and down completely randomly.
Pair Corralation between HUMANA and Defiance Silver
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.06 times more return on investment than Defiance Silver. However, HUMANA INC is 15.85 times less risky than Defiance Silver. It trades about -0.11 of its potential returns per unit of risk. Defiance Silver Corp is currently generating about -0.32 per unit of risk. If you would invest 8,111 in HUMANA INC on August 27, 2024 and sell it today you would lose (76.00) from holding HUMANA INC or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
HUMANA INC vs. Defiance Silver Corp
Performance |
| Timeline |
| HUMANA INC |
| Defiance Silver Corp |
HUMANA and Defiance Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Defiance Silver
The main advantage of trading using opposite HUMANA and Defiance Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Defiance Silver 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 Defiance Silver will offset losses from the drop in Defiance Silver's long position.| HUMANA vs. Ultra Clean Holdings | HUMANA vs. Dream Homes Development | HUMANA vs. JBG SMITH Properties | HUMANA vs. Allegheny Technologies Incorporated |
| Defiance Silver vs. Morningstar Unconstrained Allocation | Defiance Silver vs. High Yield Municipal Fund | Defiance Silver vs. Knife River | Defiance Silver vs. Klckner Co SE |
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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