Correlation Between HUMANA and Gold
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By analyzing existing cross correlation between HUMANA INC and Gold And Gemstone, you can compare the effects of market volatilities on HUMANA and Gold 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 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Gold.
Diversification Opportunities for HUMANA and Gold
Poor diversification
The 3 months correlation between HUMANA and Gold is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Gold And Gemstone in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold And Gemstone 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 Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold And Gemstone has no effect on the direction of HUMANA i.e., HUMANA and Gold go up and down completely randomly.
Pair Corralation between HUMANA and Gold
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.07 times more return on investment than Gold. However, HUMANA INC is 13.37 times less risky than Gold. It trades about -0.21 of its potential returns per unit of risk. Gold And Gemstone is currently generating about -0.07 per unit of risk. If you would invest 8,090 in HUMANA INC on August 31, 2024 and sell it today you would lose (395.00) from holding HUMANA INC or give up 4.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Gold And Gemstone
Performance |
| Timeline |
| HUMANA INC |
| Gold And Gemstone |
HUMANA and Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Gold
The main advantage of trading using opposite HUMANA and Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Gold 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 Gold will offset losses from the drop in Gold's long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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