Correlation Between HUMANA and Hw Opportunities
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By analyzing existing cross correlation between HUMANA INC and Hw Opportunities Mp, you can compare the effects of market volatilities on HUMANA and Hw Opportunities 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 Hw Opportunities. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Hw Opportunities.
Diversification Opportunities for HUMANA and Hw Opportunities
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and HOMPX is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Hw Opportunities Mp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hw Opportunities 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 Hw Opportunities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hw Opportunities has no effect on the direction of HUMANA i.e., HUMANA and Hw Opportunities go up and down completely randomly.
Pair Corralation between HUMANA and Hw Opportunities
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Hw Opportunities. In addition to that, HUMANA is 1.57 times more volatile than Hw Opportunities Mp. It trades about -0.22 of its total potential returns per unit of risk. Hw Opportunities Mp is currently generating about 0.24 per unit of volatility. If you would invest 1,553 in Hw Opportunities Mp on August 30, 2024 and sell it today you would earn a total of 59.00 from holding Hw Opportunities Mp or generate 3.8% 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. Hw Opportunities Mp
Performance |
| Timeline |
| HUMANA INC |
| Hw Opportunities |
HUMANA and Hw Opportunities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Hw Opportunities
The main advantage of trading using opposite HUMANA and Hw Opportunities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Hw Opportunities 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 Hw Opportunities will offset losses from the drop in Hw Opportunities' long position.The idea behind HUMANA INC and Hw Opportunities Mp 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.| Hw Opportunities vs. Vanguard Mid Cap Value | Hw Opportunities vs. HUMANA INC | Hw Opportunities vs. Aquagold International | Hw Opportunities vs. Barloworld Ltd ADR |
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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