Correlation Between HUMANA and Great Elm
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By analyzing existing cross correlation between HUMANA INC and Great Elm Group, you can compare the effects of market volatilities on HUMANA and Great Elm 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 Great Elm. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Great Elm.
Diversification Opportunities for HUMANA and Great Elm
Modest diversification
The 3 months correlation between HUMANA and Great is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Great Elm Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Elm Group 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 Great Elm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Elm Group has no effect on the direction of HUMANA i.e., HUMANA and Great Elm go up and down completely randomly.
Pair Corralation between HUMANA and Great Elm
Assuming the 90 days trading horizon HUMANA INC is expected to generate 46.24 times more return on investment than Great Elm. However, HUMANA is 46.24 times more volatile than Great Elm Group. It trades about 0.08 of its potential returns per unit of risk. Great Elm Group is currently generating about -0.01 per unit of risk. If you would invest 7,917 in HUMANA INC on August 31, 2024 and sell it today you would lose (222.00) from holding HUMANA INC or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.32% |
| Values | Daily Returns |
HUMANA INC vs. Great Elm Group
Performance |
| Timeline |
| HUMANA INC |
| Great Elm Group |
HUMANA and Great Elm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Great Elm
The main advantage of trading using opposite HUMANA and Great Elm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Great Elm 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 Great Elm will offset losses from the drop in Great Elm's 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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