Correlation Between HUMANA and International Consolidated
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By analyzing existing cross correlation between HUMANA INC and International Consolidated Airlines, you can compare the effects of market volatilities on HUMANA and International Consolidated 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 International Consolidated. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and International Consolidated.
Diversification Opportunities for HUMANA and International Consolidated
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and International is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and International Consolidated Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Consolidated 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 International Consolidated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Consolidated has no effect on the direction of HUMANA i.e., HUMANA and International Consolidated go up and down completely randomly.
Pair Corralation between HUMANA and International Consolidated
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.38 times more return on investment than International Consolidated. However, HUMANA INC is 2.61 times less risky than International Consolidated. It trades about -0.11 of its potential returns per unit of risk. International Consolidated Airlines is currently generating about -0.07 per unit of risk. If you would invest 8,086 in HUMANA INC on December 6, 2024 and sell it today you would lose (187.00) from holding HUMANA INC or give up 2.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. International Consolidated Air
Performance |
| Timeline |
| HUMANA INC |
| International Consolidated |
HUMANA and International Consolidated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and International Consolidated
The main advantage of trading using opposite HUMANA and International Consolidated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, International Consolidated 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 International Consolidated will offset losses from the drop in International Consolidated's long position.| HUMANA vs. The Joint Corp | HUMANA vs. Avadel Pharmaceuticals PLC | HUMANA vs. Frontier Group Holdings | HUMANA vs. Delta Air Lines |
| International Consolidated vs. Air France KLM SA | International Consolidated vs. Air France KLM | International Consolidated vs. Finnair Oyj | International Consolidated vs. AirAsia Group Berhad |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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