Correlation Between HUMANA and KeyCorp
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By analyzing existing cross correlation between HUMANA INC and KeyCorp, you can compare the effects of market volatilities on HUMANA and KeyCorp 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 KeyCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and KeyCorp.
Diversification Opportunities for HUMANA and KeyCorp
Very good diversification
The 3 months correlation between HUMANA and KeyCorp is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and KeyCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KeyCorp 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 KeyCorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KeyCorp has no effect on the direction of HUMANA i.e., HUMANA and KeyCorp go up and down completely randomly.
Pair Corralation between HUMANA and KeyCorp
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.62 times more return on investment than KeyCorp. However, HUMANA INC is 1.61 times less risky than KeyCorp. It trades about -0.05 of its potential returns per unit of risk. KeyCorp is currently generating about -0.03 per unit of risk. If you would invest 8,090 in HUMANA INC on September 4, 2024 and sell it today you would lose (55.00) from holding HUMANA INC or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
HUMANA INC vs. KeyCorp
Performance |
| Timeline |
| HUMANA INC |
| KeyCorp |
HUMANA and KeyCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and KeyCorp
The main advantage of trading using opposite HUMANA and KeyCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, KeyCorp 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 KeyCorp will offset losses from the drop in KeyCorp's long position.| HUMANA vs. Usio Inc | HUMANA vs. MACOM Technology Solutions | HUMANA vs. Amkor Technology | HUMANA vs. Analog Devices |
| KeyCorp vs. Capital One Financial | KeyCorp vs. Bank of America | KeyCorp vs. HUMANA INC | KeyCorp vs. Aquagold International |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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