Correlation Between HUMANA and Linamar
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By analyzing existing cross correlation between HUMANA INC and Linamar, you can compare the effects of market volatilities on HUMANA and Linamar 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 Linamar. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Linamar.
Diversification Opportunities for HUMANA and Linamar
Very weak diversification
The 3 months correlation between HUMANA and Linamar is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Linamar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linamar 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 Linamar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linamar has no effect on the direction of HUMANA i.e., HUMANA and Linamar go up and down completely randomly.
Pair Corralation between HUMANA and Linamar
Assuming the 90 days trading horizon HUMANA INC is expected to generate 39.37 times more return on investment than Linamar. However, HUMANA is 39.37 times more volatile than Linamar. It trades about 0.07 of its potential returns per unit of risk. Linamar is currently generating about 0.01 per unit of risk. If you would invest 8,099 in HUMANA INC on August 28, 2024 and sell it today you would lose (404.00) from holding HUMANA INC or give up 4.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.88% |
| Values | Daily Returns |
HUMANA INC vs. Linamar
Performance |
| Timeline |
| HUMANA INC |
| Linamar |
HUMANA and Linamar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Linamar
The main advantage of trading using opposite HUMANA and Linamar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Linamar 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 Linamar will offset losses from the drop in Linamar's long position.| HUMANA vs. Ultra Clean Holdings | HUMANA vs. Dream Homes Development | HUMANA vs. JBG SMITH Properties | HUMANA vs. Allegheny Technologies Incorporated |
| Linamar vs. FitLife Brands, Common | Linamar vs. HUMANA INC | Linamar vs. SCOR PK | Linamar vs. Aquagold International |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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