Correlation Between HUMANA and Themac Resources
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By analyzing existing cross correlation between HUMANA INC and Themac Resources Group, you can compare the effects of market volatilities on HUMANA and Themac 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 Themac Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Themac Resources.
Diversification Opportunities for HUMANA and Themac Resources
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Themac is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Themac Resources Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themac 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 Themac Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themac Resources has no effect on the direction of HUMANA i.e., HUMANA and Themac Resources go up and down completely randomly.
Pair Corralation between HUMANA and Themac Resources
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Themac Resources. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 12.82 times less risky than Themac Resources. The bond trades about -0.21 of its potential returns per unit of risk. The Themac Resources Group is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2.50 in Themac Resources Group on September 1, 2024 and sell it today you would earn a total of 1.70 from holding Themac Resources Group or generate 68.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Themac Resources Group
Performance |
| Timeline |
| HUMANA INC |
| Themac Resources |
HUMANA and Themac Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Themac Resources
The main advantage of trading using opposite HUMANA and Themac Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Themac 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 Themac Resources will offset losses from the drop in Themac Resources' long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Themac Resources vs. South32 Limited | Themac Resources vs. NioCorp Developments Ltd | Themac Resources vs. HUMANA INC | Themac Resources vs. SCOR PK |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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