Correlation Between HUMANA and SPACE
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By analyzing existing cross correlation between HUMANA INC and SPACE, you can compare the effects of market volatilities on HUMANA and SPACE 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 SPACE. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and SPACE.
Diversification Opportunities for HUMANA and SPACE
Excellent diversification
The 3 months correlation between HUMANA and SPACE is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and SPACE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPACE 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 SPACE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPACE has no effect on the direction of HUMANA i.e., HUMANA and SPACE go up and down completely randomly.
Pair Corralation between HUMANA and SPACE
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.12 times more return on investment than SPACE. However, HUMANA INC is 8.49 times less risky than SPACE. It trades about -0.02 of its potential returns per unit of risk. SPACE is currently generating about -0.03 per unit of risk. If you would invest 7,927 in HUMANA INC on August 27, 2024 and sell it today you would lose (232.00) from holding HUMANA INC or give up 2.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 58.68% |
| Values | Daily Returns |
HUMANA INC vs. SPACE
Performance |
| Timeline |
| HUMANA INC |
| SPACE |
HUMANA and SPACE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and SPACE
The main advantage of trading using opposite HUMANA and SPACE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, SPACE 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 SPACE will offset losses from the drop in SPACE's long position.| HUMANA vs. Balchem | HUMANA vs. Stepan Company | HUMANA vs. Videolocity International | HUMANA vs. Luxfer Holdings PLC |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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