Correlation Between HUMANA and Point Bridge
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By analyzing existing cross correlation between HUMANA INC and Point Bridge GOP, you can compare the effects of market volatilities on HUMANA and Point Bridge 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 Point Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Point Bridge.
Diversification Opportunities for HUMANA and Point Bridge
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Point is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Point Bridge GOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Point Bridge GOP 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 Point Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Point Bridge GOP has no effect on the direction of HUMANA i.e., HUMANA and Point Bridge go up and down completely randomly.
Pair Corralation between HUMANA and Point Bridge
Assuming the 90 days trading horizon HUMANA INC is expected to generate 94.86 times more return on investment than Point Bridge. However, HUMANA is 94.86 times more volatile than Point Bridge GOP. It trades about 0.07 of its potential returns per unit of risk. Point Bridge GOP is currently generating about 0.08 per unit of risk. If you would invest 8,063 in HUMANA INC on September 5, 2024 and sell it today you would lose (28.00) from holding HUMANA INC or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.72% |
| Values | Daily Returns |
HUMANA INC vs. Point Bridge GOP
Performance |
| Timeline |
| HUMANA INC |
| Point Bridge GOP |
HUMANA and Point Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Point Bridge
The main advantage of trading using opposite HUMANA and Point Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Point Bridge 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 Point Bridge will offset losses from the drop in Point Bridge's long position.The idea behind HUMANA INC and Point Bridge GOP pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Point Bridge vs. SPDR SP Dividend | Point Bridge vs. SCOR PK | Point Bridge vs. HUMANA INC | Point Bridge 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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