Correlation Between HUMANA and Flexible Solutions
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By analyzing existing cross correlation between HUMANA INC and Flexible Solutions International, you can compare the effects of market volatilities on HUMANA and Flexible Solutions 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 Flexible Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Flexible Solutions.
Diversification Opportunities for HUMANA and Flexible Solutions
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Flexible is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Flexible Solutions Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flexible Solutions 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 Flexible Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flexible Solutions has no effect on the direction of HUMANA i.e., HUMANA and Flexible Solutions go up and down completely randomly.
Pair Corralation between HUMANA and Flexible Solutions
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Flexible Solutions. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 4.36 times less risky than Flexible Solutions. The bond trades about -0.15 of its potential returns per unit of risk. The Flexible Solutions International is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 332.00 in Flexible Solutions International on August 31, 2024 and sell it today you would earn a total of 73.00 from holding Flexible Solutions International or generate 21.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
HUMANA INC vs. Flexible Solutions Internation
Performance |
| Timeline |
| HUMANA INC |
| Flexible Solutions |
HUMANA and Flexible Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Flexible Solutions
The main advantage of trading using opposite HUMANA and Flexible Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Flexible Solutions 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 Flexible Solutions will offset losses from the drop in Flexible Solutions' long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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