Correlation Between HUMANA and Goldman Sachs
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By analyzing existing cross correlation between HUMANA INC and Goldman Sachs Short, you can compare the effects of market volatilities on HUMANA and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Goldman Sachs.
Diversification Opportunities for HUMANA and Goldman Sachs
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Goldman is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Goldman Sachs Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Short 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Short has no effect on the direction of HUMANA i.e., HUMANA and Goldman Sachs go up and down completely randomly.
Pair Corralation between HUMANA and Goldman Sachs
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Goldman Sachs. In addition to that, HUMANA is 7.95 times more volatile than Goldman Sachs Short. It trades about -0.05 of its total potential returns per unit of risk. Goldman Sachs Short is currently generating about 0.11 per unit of volatility. If you would invest 1,035 in Goldman Sachs Short on September 4, 2024 and sell it today you would earn a total of 2.00 from holding Goldman Sachs Short or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
HUMANA INC vs. Goldman Sachs Short
Performance |
| Timeline |
| HUMANA INC |
| Goldman Sachs Short |
HUMANA and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Goldman Sachs
The main advantage of trading using opposite HUMANA and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| HUMANA vs. Usio Inc | HUMANA vs. MACOM Technology Solutions | HUMANA vs. Amkor Technology | HUMANA vs. Analog Devices |
| Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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