Correlation Between HUMANA and One Step
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By analyzing existing cross correlation between HUMANA INC and One Step Vending, you can compare the effects of market volatilities on HUMANA and One Step 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 One Step. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and One Step.
Diversification Opportunities for HUMANA and One Step
Significant diversification
The 3 months correlation between HUMANA and One is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and One Step Vending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Step Vending 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 One Step. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Step Vending has no effect on the direction of HUMANA i.e., HUMANA and One Step go up and down completely randomly.
Pair Corralation between HUMANA and One Step
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the One Step. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 26.09 times less risky than One Step. The bond trades about -0.18 of its potential returns per unit of risk. The One Step Vending is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.48 in One Step Vending on September 12, 2024 and sell it today you would lose (0.23) from holding One Step Vending or give up 47.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.88% |
| Values | Daily Returns |
HUMANA INC vs. One Step Vending
Performance |
| Timeline |
| HUMANA INC |
| One Step Vending |
HUMANA and One Step Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and One Step
The main advantage of trading using opposite HUMANA and One Step positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, One Step 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 One Step will offset losses from the drop in One Step's long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
| One Step vs. Patterson Companies | One Step vs. Supernova Energy | One Step vs. AIM Energy | One Step vs. Movie Studio |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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