Correlation Between HUMANA and Logan Ridge
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By analyzing existing cross correlation between HUMANA INC and Logan Ridge Finance, you can compare the effects of market volatilities on HUMANA and Logan Ridge 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 Logan Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Logan Ridge.
Diversification Opportunities for HUMANA and Logan Ridge
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Logan is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Logan Ridge Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logan Ridge Finance 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 Logan Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logan Ridge Finance has no effect on the direction of HUMANA i.e., HUMANA and Logan Ridge go up and down completely randomly.
Pair Corralation between HUMANA and Logan Ridge
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Logan Ridge. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.07 times less risky than Logan Ridge. The bond trades about -0.21 of its potential returns per unit of risk. The Logan Ridge Finance is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,465 in Logan Ridge Finance on August 31, 2024 and sell it today you would earn a total of 133.00 from holding Logan Ridge Finance or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Logan Ridge Finance
Performance |
| Timeline |
| HUMANA INC |
| Logan Ridge Finance |
HUMANA and Logan Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Logan Ridge
The main advantage of trading using opposite HUMANA and Logan Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Logan Ridge 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 Logan Ridge will offset losses from the drop in Logan Ridge's long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
| Logan Ridge vs. Badger Infrastructure Solutions | Logan Ridge vs. Portman Ridge Finance | Logan Ridge vs. Inotiv Inc | Logan Ridge vs. Phenixfin |
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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