Correlation Between HUMANA and Hannan Metals
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By analyzing existing cross correlation between HUMANA INC and Hannan Metals, you can compare the effects of market volatilities on HUMANA and Hannan Metals 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 Hannan Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Hannan Metals.
Diversification Opportunities for HUMANA and Hannan Metals
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Hannan is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Hannan Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hannan Metals 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 Hannan Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hannan Metals has no effect on the direction of HUMANA i.e., HUMANA and Hannan Metals go up and down completely randomly.
Pair Corralation between HUMANA and Hannan Metals
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Hannan Metals. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 10.14 times less risky than Hannan Metals. The bond trades about -0.01 of its potential returns per unit of risk. The Hannan Metals is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Hannan Metals on September 3, 2024 and sell it today you would earn a total of 30.00 from holding Hannan Metals or generate 250.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.37% |
| Values | Daily Returns |
HUMANA INC vs. Hannan Metals
Performance |
| Timeline |
| HUMANA INC |
| Hannan Metals |
HUMANA and Hannan Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Hannan Metals
The main advantage of trading using opposite HUMANA and Hannan Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Hannan Metals 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 Hannan Metals will offset losses from the drop in Hannan Metals' long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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