Correlation Between HUMANA and Green Star
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By analyzing existing cross correlation between HUMANA INC and Green Star Products, you can compare the effects of market volatilities on HUMANA and Green Star 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 Green Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Green Star.
Diversification Opportunities for HUMANA and Green Star
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Green is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Green Star Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Star Products 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 Green Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Star Products has no effect on the direction of HUMANA i.e., HUMANA and Green Star go up and down completely randomly.
Pair Corralation between HUMANA and Green Star
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Green Star. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 14.83 times less risky than Green Star. The bond trades about -0.22 of its potential returns per unit of risk. The Green Star Products is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.11 in Green Star Products on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Green Star Products or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Green Star Products
Performance |
| Timeline |
| HUMANA INC |
| Green Star Products |
HUMANA and Green Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Green Star
The main advantage of trading using opposite HUMANA and Green Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Green Star 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 Green Star will offset losses from the drop in Green Star's long position.The idea behind HUMANA INC and Green Star Products 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.| Green Star vs. Akzo Nobel NV | Green Star vs. Avoca LLC | Green Star vs. Arkema SA ADR | Green Star 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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