Correlation Between HUMANA and KWG Resources
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By analyzing existing cross correlation between HUMANA INC and KWG Resources, you can compare the effects of market volatilities on HUMANA and KWG Resources 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 KWG Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and KWG Resources.
Diversification Opportunities for HUMANA and KWG Resources
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and KWG is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and KWG Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KWG Resources 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 KWG Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KWG Resources has no effect on the direction of HUMANA i.e., HUMANA and KWG Resources go up and down completely randomly.
Pair Corralation between HUMANA and KWG Resources
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.06 times more return on investment than KWG Resources. However, HUMANA INC is 16.54 times less risky than KWG Resources. It trades about -0.1 of its potential returns per unit of risk. KWG Resources is currently generating about -0.03 per unit of risk. If you would invest 8,078 in HUMANA INC on December 1, 2024 and sell it today you would lose (179.00) from holding HUMANA INC or give up 2.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUMANA INC vs. KWG Resources
Performance |
| Timeline |
| HUMANA INC |
| KWG Resources |
HUMANA and KWG Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and KWG Resources
The main advantage of trading using opposite HUMANA and KWG Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, KWG Resources 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 KWG Resources will offset losses from the drop in KWG Resources' long position.| HUMANA vs. Lululemon Athletica | HUMANA vs. Lithium Americas Corp | HUMANA vs. Cementos Pacasmayo SAA | HUMANA vs. Arhaus Inc |
| KWG Resources vs. Edison Cobalt Corp | KWG Resources vs. Champion Bear Resources | KWG Resources vs. Avarone Metals | KWG Resources vs. Adriatic Metals PLC |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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