Correlation Between HUMANA and First National
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By analyzing existing cross correlation between HUMANA INC and First National of, you can compare the effects of market volatilities on HUMANA and First National 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 First National. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and First National.
Diversification Opportunities for HUMANA and First National
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and First is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and First National of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First National 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 First National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First National has no effect on the direction of HUMANA i.e., HUMANA and First National go up and down completely randomly.
Pair Corralation between HUMANA and First National
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the First National. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 2.12 times less risky than First National. The bond trades about -0.04 of its potential returns per unit of risk. The First National of is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,210,000 in First National of on September 2, 2024 and sell it today you would earn a total of 0.00 from holding First National of or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
HUMANA INC vs. First National of
Performance |
| Timeline |
| HUMANA INC |
| First National |
HUMANA and First National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and First National
The main advantage of trading using opposite HUMANA and First National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, First National 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 First National will offset losses from the drop in First National's long position.The idea behind HUMANA INC and First National of 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.| First National vs. Washington Business Bank | First National vs. National Capital Bank | First National vs. Community Heritage Financial | First National vs. Citizens Financial Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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