Correlation Between HUMANA and Gold Springs
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By analyzing existing cross correlation between HUMANA INC and Gold Springs Resource, you can compare the effects of market volatilities on HUMANA and Gold Springs 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 Springs. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Gold Springs.
Diversification Opportunities for HUMANA and Gold Springs
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUMANA and Gold is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Gold Springs Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Springs Resource 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 Springs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Springs Resource has no effect on the direction of HUMANA i.e., HUMANA and Gold Springs go up and down completely randomly.
Pair Corralation between HUMANA and Gold Springs
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Gold Springs. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 10.85 times less risky than Gold Springs. The bond trades about -0.02 of its potential returns per unit of risk. The Gold Springs Resource is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 7.00 in Gold Springs Resource on November 2, 2024 and sell it today you would lose (1.20) from holding Gold Springs Resource or give up 17.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.03% |
| Values | Daily Returns |
HUMANA INC vs. Gold Springs Resource
Performance |
| Timeline |
| HUMANA INC |
| Gold Springs Resource |
HUMANA and Gold Springs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Gold Springs
The main advantage of trading using opposite HUMANA and Gold Springs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Gold Springs 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 Springs will offset losses from the drop in Gold Springs' long position.The idea behind HUMANA INC and Gold Springs Resource pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Gold Springs vs. Palamina Corp | Gold Springs vs. BTU Metals Corp | Gold Springs vs. Norsemont Mining | Gold Springs vs. FireFox Gold Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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