Correlation Between HUMANA and Hoya Capital
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By analyzing existing cross correlation between HUMANA INC and The Hoya Capital, you can compare the effects of market volatilities on HUMANA and Hoya Capital 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 Hoya Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Hoya Capital.
Diversification Opportunities for HUMANA and Hoya Capital
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUMANA and Hoya is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and The Hoya Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoya Capital 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 Hoya Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoya Capital has no effect on the direction of HUMANA i.e., HUMANA and Hoya Capital go up and down completely randomly.
Pair Corralation between HUMANA and Hoya Capital
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Hoya Capital. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.29 times less risky than Hoya Capital. The bond trades about -0.18 of its potential returns per unit of risk. The The Hoya Capital is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4,879 in The Hoya Capital on September 12, 2024 and sell it today you would earn a total of 46.25 from holding The Hoya Capital or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.88% |
| Values | Daily Returns |
HUMANA INC vs. The Hoya Capital
Performance |
| Timeline |
| HUMANA INC |
| Hoya Capital |
HUMANA and Hoya Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Hoya Capital
The main advantage of trading using opposite HUMANA and Hoya Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Hoya Capital 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 Hoya Capital will offset losses from the drop in Hoya Capital's long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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