Correlation Between HUMANA and Grupo Carso
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By analyzing existing cross correlation between HUMANA INC and Grupo Carso SAB, you can compare the effects of market volatilities on HUMANA and Grupo Carso 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 Grupo Carso. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Grupo Carso.
Diversification Opportunities for HUMANA and Grupo Carso
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Grupo is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Grupo Carso SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Carso SAB 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 Grupo Carso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Carso SAB has no effect on the direction of HUMANA i.e., HUMANA and Grupo Carso go up and down completely randomly.
Pair Corralation between HUMANA and Grupo Carso
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.21 times more return on investment than Grupo Carso. However, HUMANA INC is 4.79 times less risky than Grupo Carso. It trades about -0.05 of its potential returns per unit of risk. Grupo Carso SAB is currently generating about -0.22 per unit of risk. If you would invest 8,090 in HUMANA INC on September 3, 2024 and sell it today you would lose (55.00) from holding HUMANA INC or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
HUMANA INC vs. Grupo Carso SAB
Performance |
| Timeline |
| HUMANA INC |
| Grupo Carso SAB |
HUMANA and Grupo Carso Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Grupo Carso
The main advantage of trading using opposite HUMANA and Grupo Carso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Grupo Carso 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 Grupo Carso will offset losses from the drop in Grupo Carso's long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
| Grupo Carso vs. Grupo Bimbo SAB | Grupo Carso vs. Grupo Financiero Inbursa | Grupo Carso vs. Becle SA de | Grupo Carso vs. HUMANA INC |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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