Correlation Between HUMANA and Icon Information
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By analyzing existing cross correlation between HUMANA INC and Icon Information Technology, you can compare the effects of market volatilities on HUMANA and Icon Information 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 Icon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Icon Information.
Diversification Opportunities for HUMANA and Icon Information
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and ICON is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Icon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Information Tec 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 Icon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Information Tec has no effect on the direction of HUMANA i.e., HUMANA and Icon Information go up and down completely randomly.
Pair Corralation between HUMANA and Icon Information
Assuming the 90 days trading horizon HUMANA INC is expected to generate 1.46 times more return on investment than Icon Information. However, HUMANA is 1.46 times more volatile than Icon Information Technology. It trades about 0.12 of its potential returns per unit of risk. Icon Information Technology is currently generating about -0.15 per unit of risk. If you would invest 8,197 in HUMANA INC on October 9, 2024 and sell it today you would earn a total of 247.00 from holding HUMANA INC or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
HUMANA INC vs. Icon Information Technology
Performance |
| Timeline |
| HUMANA INC |
| Icon Information Tec |
HUMANA and Icon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Icon Information
The main advantage of trading using opposite HUMANA and Icon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Icon Information 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 Icon Information will offset losses from the drop in Icon Information's long position.| HUMANA vs. The Cheesecake Factory | HUMANA vs. Oasis Hotel Resort | HUMANA vs. Cardinal Health | HUMANA vs. Definitive Healthcare Corp |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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