Correlation Between HUMANA and Eos Energy
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By analyzing existing cross correlation between HUMANA INC and Eos Energy Enterprises, you can compare the effects of market volatilities on HUMANA and Eos 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 Eos Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Eos Energy.
Diversification Opportunities for HUMANA and Eos Energy
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and Eos is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Eos Energy Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eos Energy Enterprises 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 Eos Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eos Energy Enterprises has no effect on the direction of HUMANA i.e., HUMANA and Eos Energy go up and down completely randomly.
Pair Corralation between HUMANA and Eos Energy
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Eos Energy. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 14.0 times less risky than Eos Energy. The bond trades about -0.18 of its potential returns per unit of risk. The Eos Energy Enterprises is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Eos Energy Enterprises on September 2, 2024 and sell it today you would lose (3.00) from holding Eos Energy Enterprises or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Eos Energy Enterprises
Performance |
| Timeline |
| HUMANA INC |
| Eos Energy Enterprises |
HUMANA and Eos Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Eos Energy
The main advantage of trading using opposite HUMANA and Eos Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Eos 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 Eos Energy will offset losses from the drop in Eos Energy's long position.The idea behind HUMANA INC and Eos Energy Enterprises pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Eos Energy vs. Eos Energy Enterprises | Eos Energy vs. CuriosityStream | Eos Energy vs. GCM Grosvenor | Eos Energy vs. Canoo Holdings |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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