Correlation Between HUMANA and Salient International
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By analyzing existing cross correlation between HUMANA INC and Salient International Real, you can compare the effects of market volatilities on HUMANA and Salient International 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 Salient International. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Salient International.
Diversification Opportunities for HUMANA and Salient International
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUMANA and SALIENT is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Salient International Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient International 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 Salient International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient International has no effect on the direction of HUMANA i.e., HUMANA and Salient International go up and down completely randomly.
Pair Corralation between HUMANA and Salient International
Assuming the 90 days trading horizon HUMANA is expected to generate 6.46 times less return on investment than Salient International. But when comparing it to its historical volatility, HUMANA INC is 1.39 times less risky than Salient International. It trades about 0.02 of its potential returns per unit of risk. Salient International Real is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,186 in Salient International Real on August 29, 2024 and sell it today you would earn a total of 139.00 from holding Salient International Real or generate 11.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.83% |
| Values | Daily Returns |
HUMANA INC vs. Salient International Real
Performance |
| Timeline |
| HUMANA INC |
| Salient International |
HUMANA and Salient International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Salient International
The main advantage of trading using opposite HUMANA and Salient International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Salient International 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 Salient International will offset losses from the drop in Salient International's long position.The idea behind HUMANA INC and Salient International Real pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Salient International vs. HUMANA INC | Salient International vs. Aquagold International | Salient International vs. Barloworld Ltd ADR | Salient International vs. Morningstar Unconstrained Allocation |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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