Correlation Between HUMANA and FP Newspapers
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By analyzing existing cross correlation between HUMANA INC and FP Newspapers, you can compare the effects of market volatilities on HUMANA and FP Newspapers 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 FP Newspapers. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and FP Newspapers.
Diversification Opportunities for HUMANA and FP Newspapers
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and FPNUF is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and FP Newspapers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FP Newspapers 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 FP Newspapers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FP Newspapers has no effect on the direction of HUMANA i.e., HUMANA and FP Newspapers go up and down completely randomly.
Pair Corralation between HUMANA and FP Newspapers
Assuming the 90 days trading horizon HUMANA INC is expected to generate 44.89 times more return on investment than FP Newspapers. However, HUMANA is 44.89 times more volatile than FP Newspapers. It trades about 0.07 of its potential returns per unit of risk. FP Newspapers is currently generating about -0.05 per unit of risk. If you would invest 7,723 in HUMANA INC on November 19, 2024 and sell it today you would earn a total of 176.00 from holding HUMANA INC or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.15% |
| Values | Daily Returns |
HUMANA INC vs. FP Newspapers
Performance |
| Timeline |
| HUMANA INC |
| FP Newspapers |
HUMANA and FP Newspapers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and FP Newspapers
The main advantage of trading using opposite HUMANA and FP Newspapers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, FP Newspapers 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 FP Newspapers will offset losses from the drop in FP Newspapers' long position.| HUMANA vs. ioneer Ltd American | HUMANA vs. Griffon | HUMANA vs. Hurco Companies | HUMANA vs. Perseus Mining Limited |
| FP Newspapers vs. Xponential Fitness | FP Newspapers vs. Playtech plc | FP Newspapers vs. Ubisoft Entertainment | FP Newspapers vs. East Africa Metals |
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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