Correlation Between HUMANA and Knife River
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By analyzing existing cross correlation between HUMANA INC and Knife River, you can compare the effects of market volatilities on HUMANA and Knife River 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 Knife River. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Knife River.
Diversification Opportunities for HUMANA and Knife River
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Knife is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Knife River in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knife River 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 Knife River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knife River has no effect on the direction of HUMANA i.e., HUMANA and Knife River go up and down completely randomly.
Pair Corralation between HUMANA and Knife River
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Knife River. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 2.63 times less risky than Knife River. The bond trades about -0.16 of its potential returns per unit of risk. The Knife River is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 9,064 in Knife River on September 13, 2024 and sell it today you would earn a total of 1,509 from holding Knife River or generate 16.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Knife River
Performance |
| Timeline |
| HUMANA INC |
| Knife River |
HUMANA and Knife River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Knife River
The main advantage of trading using opposite HUMANA and Knife River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Knife River 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 Knife River will offset losses from the drop in Knife River's long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
| Knife River vs. Ecolab Inc | Knife River vs. Hudson Technologies | Knife River vs. The Mosaic | Knife River vs. Freedom Bank of |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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