Correlation Between HUMANA and Dorian LPG
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By analyzing existing cross correlation between HUMANA INC and Dorian LPG, you can compare the effects of market volatilities on HUMANA and Dorian LPG 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 Dorian LPG. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Dorian LPG.
Diversification Opportunities for HUMANA and Dorian LPG
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUMANA and Dorian is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Dorian LPG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dorian LPG 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 Dorian LPG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dorian LPG has no effect on the direction of HUMANA i.e., HUMANA and Dorian LPG go up and down completely randomly.
Pair Corralation between HUMANA and Dorian LPG
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.23 times more return on investment than Dorian LPG. However, HUMANA INC is 4.39 times less risky than Dorian LPG. It trades about -0.08 of its potential returns per unit of risk. Dorian LPG is currently generating about -0.27 per unit of risk. If you would invest 8,100 in HUMANA INC on August 24, 2024 and sell it today you would lose (65.00) from holding HUMANA INC or give up 0.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.96% |
| Values | Daily Returns |
HUMANA INC vs. Dorian LPG
Performance |
| Timeline |
| HUMANA INC |
| Dorian LPG |
HUMANA and Dorian LPG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Dorian LPG
The main advantage of trading using opposite HUMANA and Dorian LPG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Dorian LPG 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 Dorian LPG will offset losses from the drop in Dorian LPG's long position.| HUMANA vs. Drilling Tools International | HUMANA vs. Delek Drilling | HUMANA vs. Vera Bradley | HUMANA vs. Duluth Holdings |
| Dorian LPG vs. DHT Holdings | Dorian LPG vs. Teekay | Dorian LPG vs. HUMANA INC | Dorian LPG 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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