Correlation Between HUMANA and Vopia
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By analyzing existing cross correlation between HUMANA INC and Vopia Inc, you can compare the effects of market volatilities on HUMANA and Vopia 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 Vopia. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Vopia.
Diversification Opportunities for HUMANA and Vopia
Significant diversification
The 3 months correlation between HUMANA and Vopia is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Vopia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vopia Inc 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 Vopia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vopia Inc has no effect on the direction of HUMANA i.e., HUMANA and Vopia go up and down completely randomly.
Pair Corralation between HUMANA and Vopia
Assuming the 90 days trading horizon HUMANA is expected to generate 166.09 times less return on investment than Vopia. But when comparing it to its historical volatility, HUMANA INC is 28.15 times less risky than Vopia. It trades about 0.01 of its potential returns per unit of risk. Vopia Inc is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.04 in Vopia Inc on September 3, 2024 and sell it today you would lose (0.01) from holding Vopia Inc or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.17% |
| Values | Daily Returns |
HUMANA INC vs. Vopia Inc
Performance |
| Timeline |
| HUMANA INC |
| Vopia Inc |
HUMANA and Vopia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Vopia
The main advantage of trading using opposite HUMANA and Vopia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Vopia 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 Vopia will offset losses from the drop in Vopia's long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
| Vopia vs. ASSA ABLOY AB | Vopia vs. Bridger Aerospace Group | Vopia vs. Ameriguard Security Services | Vopia vs. Global Digital Soltn |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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