Correlation Between HUMANA and Halma PLC
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Halma PLC, you can compare the effects of market volatilities on HUMANA and Halma PLC 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 Halma PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Halma PLC.
Diversification Opportunities for HUMANA and Halma PLC
Modest diversification
The 3 months correlation between HUMANA and Halma is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Halma PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halma PLC 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 Halma PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halma PLC has no effect on the direction of HUMANA i.e., HUMANA and Halma PLC go up and down completely randomly.
Pair Corralation between HUMANA and Halma PLC
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Halma PLC. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 3.53 times less risky than Halma PLC. The bond trades about -0.05 of its potential returns per unit of risk. The Halma PLC is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 6,451 in Halma PLC on September 4, 2024 and sell it today you would earn a total of 616.00 from holding Halma PLC or generate 9.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
HUMANA INC vs. Halma PLC
Performance |
| Timeline |
| HUMANA INC |
| Halma PLC |
HUMANA and Halma PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Halma PLC
The main advantage of trading using opposite HUMANA and Halma PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Halma PLC 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 Halma PLC will offset losses from the drop in Halma PLC's long position.| HUMANA vs. Usio Inc | HUMANA vs. MACOM Technology Solutions | HUMANA vs. Amkor Technology | HUMANA vs. Analog Devices |
| Halma PLC vs. Grupo Bimbo SAB | Halma PLC vs. Grupo Financiero Inbursa | Halma PLC vs. Becle SA de | Halma PLC 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |