Correlation Between HUMANA and Labrador Iron
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By analyzing existing cross correlation between HUMANA INC and Labrador Iron Ore, you can compare the effects of market volatilities on HUMANA and Labrador Iron 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 Labrador Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Labrador Iron.
Diversification Opportunities for HUMANA and Labrador Iron
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and Labrador is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Labrador Iron Ore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Labrador Iron Ore 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 Labrador Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Labrador Iron Ore has no effect on the direction of HUMANA i.e., HUMANA and Labrador Iron go up and down completely randomly.
Pair Corralation between HUMANA and Labrador Iron
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.72 times more return on investment than Labrador Iron. However, HUMANA INC is 1.38 times less risky than Labrador Iron. It trades about -0.21 of its potential returns per unit of risk. Labrador Iron Ore is currently generating about -0.16 per unit of risk. If you would invest 8,090 in HUMANA INC on August 31, 2024 and sell it today you would lose (395.00) from holding HUMANA INC or give up 4.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Labrador Iron Ore
Performance |
| Timeline |
| HUMANA INC |
| Labrador Iron Ore |
HUMANA and Labrador Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Labrador Iron
The main advantage of trading using opposite HUMANA and Labrador Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Labrador Iron 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 Labrador Iron will offset losses from the drop in Labrador Iron's long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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