Correlation Between HUMANA and FLEX LNG
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By analyzing existing cross correlation between HUMANA INC and FLEX LNG, you can compare the effects of market volatilities on HUMANA and FLEX LNG 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 FLEX LNG. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and FLEX LNG.
Diversification Opportunities for HUMANA and FLEX LNG
Modest diversification
The 3 months correlation between HUMANA and FLEX is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and FLEX LNG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLEX LNG 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 FLEX LNG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLEX LNG has no effect on the direction of HUMANA i.e., HUMANA and FLEX LNG go up and down completely randomly.
Pair Corralation between HUMANA and FLEX LNG
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.27 times more return on investment than FLEX LNG. However, HUMANA INC is 3.64 times less risky than FLEX LNG. It trades about -0.06 of its potential returns per unit of risk. FLEX LNG is currently generating about -0.02 per unit of risk. If you would invest 8,101 in HUMANA INC on August 30, 2024 and sell it today you would lose (66.00) from holding HUMANA INC or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
HUMANA INC vs. FLEX LNG
Performance |
| Timeline |
| HUMANA INC |
| FLEX LNG |
HUMANA and FLEX LNG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and FLEX LNG
The main advantage of trading using opposite HUMANA and FLEX LNG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, FLEX LNG 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 FLEX LNG will offset losses from the drop in FLEX LNG's long position.| HUMANA vs. Brandywine Realty Trust | HUMANA vs. Celsius Holdings | HUMANA vs. Uber Technologies | HUMANA vs. PepsiCo |
| FLEX LNG vs. Frontline | FLEX LNG vs. Torm PLC Class | FLEX LNG vs. Navigator Holdings | FLEX LNG vs. Teekay Tankers |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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