Correlation Between HUMANA and Katahdin Bankshares
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By analyzing existing cross correlation between HUMANA INC and Katahdin Bankshares Corp, you can compare the effects of market volatilities on HUMANA and Katahdin Bankshares 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 Katahdin Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Katahdin Bankshares.
Diversification Opportunities for HUMANA and Katahdin Bankshares
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Katahdin is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Katahdin Bankshares Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Katahdin Bankshares Corp 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 Katahdin Bankshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Katahdin Bankshares Corp has no effect on the direction of HUMANA i.e., HUMANA and Katahdin Bankshares go up and down completely randomly.
Pair Corralation between HUMANA and Katahdin Bankshares
Assuming the 90 days trading horizon HUMANA INC is expected to generate 36.13 times more return on investment than Katahdin Bankshares. However, HUMANA is 36.13 times more volatile than Katahdin Bankshares Corp. It trades about 0.07 of its potential returns per unit of risk. Katahdin Bankshares Corp is currently generating about 0.02 per unit of risk. If you would invest 7,840 in HUMANA INC on September 14, 2024 and sell it today you would lose (145.00) from holding HUMANA INC or give up 1.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 82.15% |
| Values | Daily Returns |
HUMANA INC vs. Katahdin Bankshares Corp
Performance |
| Timeline |
| HUMANA INC |
| Katahdin Bankshares Corp |
HUMANA and Katahdin Bankshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Katahdin Bankshares
The main advantage of trading using opposite HUMANA and Katahdin Bankshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Katahdin Bankshares 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 Katahdin Bankshares will offset losses from the drop in Katahdin Bankshares' long position.| HUMANA vs. Doubledown Interactive Co | HUMANA vs. Golden Matrix Group | HUMANA vs. Skechers USA | HUMANA vs. NetEase |
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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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