Correlation Between HUMANA and Goodfood Market
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By analyzing existing cross correlation between HUMANA INC and Goodfood Market Corp, you can compare the effects of market volatilities on HUMANA and Goodfood Market 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 Goodfood Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Goodfood Market.
Diversification Opportunities for HUMANA and Goodfood Market
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Goodfood is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Goodfood Market Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodfood Market Corp 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 Goodfood Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodfood Market Corp has no effect on the direction of HUMANA i.e., HUMANA and Goodfood Market go up and down completely randomly.
Pair Corralation between HUMANA and Goodfood Market
Assuming the 90 days trading horizon HUMANA INC is expected to generate 21.87 times more return on investment than Goodfood Market. However, HUMANA is 21.87 times more volatile than Goodfood Market Corp. It trades about 0.07 of its potential returns per unit of risk. Goodfood Market Corp is currently generating about 0.01 per unit of risk. If you would invest 7,962 in HUMANA INC on August 25, 2024 and sell it today you would earn a total of 73.00 from holding HUMANA INC or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.75% |
| Values | Daily Returns |
HUMANA INC vs. Goodfood Market Corp
Performance |
| Timeline |
| HUMANA INC |
| Goodfood Market Corp |
HUMANA and Goodfood Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Goodfood Market
The main advantage of trading using opposite HUMANA and Goodfood Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Goodfood Market 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 Goodfood Market will offset losses from the drop in Goodfood Market's long position.| HUMANA vs. Deluxe | HUMANA vs. Vita Coco | HUMANA vs. Willamette Valley Vineyards | HUMANA vs. Global E Online |
| Goodfood Market vs. Frontdoor | Goodfood Market vs. Regis Common | Goodfood Market vs. XWELL Inc | Goodfood Market vs. GD Entertainment Technology |
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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