Correlation Between HUMANA and GP Solutions
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By analyzing existing cross correlation between HUMANA INC and GP Solutions, you can compare the effects of market volatilities on HUMANA and GP Solutions 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 GP Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and GP Solutions.
Diversification Opportunities for HUMANA and GP Solutions
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and GWPD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and GP Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GP Solutions 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 GP Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GP Solutions has no effect on the direction of HUMANA i.e., HUMANA and GP Solutions go up and down completely randomly.
Pair Corralation between HUMANA and GP Solutions
Assuming the 90 days trading horizon HUMANA INC is expected to generate 1.43 times more return on investment than GP Solutions. However, HUMANA is 1.43 times more volatile than GP Solutions. It trades about 0.07 of its potential returns per unit of risk. GP Solutions is currently generating about 0.05 per unit of risk. If you would invest 7,891 in HUMANA INC on September 12, 2024 and sell it today you would lose (196.00) from holding HUMANA INC or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.01% |
| Values | Daily Returns |
HUMANA INC vs. GP Solutions
Performance |
| Timeline |
| HUMANA INC |
| GP Solutions |
HUMANA and GP Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and GP Solutions
The main advantage of trading using opposite HUMANA and GP Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, GP Solutions 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 GP Solutions will offset losses from the drop in GP Solutions' long position.The idea behind HUMANA INC and GP Solutions 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.| GP Solutions vs. HUMANA INC | GP Solutions vs. Barloworld Ltd ADR | GP Solutions vs. Morningstar Unconstrained Allocation | GP Solutions vs. Thrivent High Yield |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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