Correlation Between HUMANA and Bny Mellon
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By analyzing existing cross correlation between HUMANA INC and Bny Mellon Emerging, you can compare the effects of market volatilities on HUMANA and Bny Mellon 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 Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Bny Mellon.
Diversification Opportunities for HUMANA and Bny Mellon
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Bny is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Bny Mellon Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon Emerging 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 Bny Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bny Mellon Emerging has no effect on the direction of HUMANA i.e., HUMANA and Bny Mellon go up and down completely randomly.
Pair Corralation between HUMANA and Bny Mellon
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Bny Mellon. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.24 times less risky than Bny Mellon. The bond trades about -0.04 of its potential returns per unit of risk. The Bny Mellon Emerging is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 991.00 in Bny Mellon Emerging on September 1, 2024 and sell it today you would earn a total of 32.00 from holding Bny Mellon Emerging or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
HUMANA INC vs. Bny Mellon Emerging
Performance |
| Timeline |
| HUMANA INC |
| Bny Mellon Emerging |
HUMANA and Bny Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Bny Mellon
The main advantage of trading using opposite HUMANA and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Bny Mellon 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 Bny Mellon will offset losses from the drop in Bny Mellon's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Bny Mellon vs. Bny Mellon Massachusetts | Bny Mellon vs. Bny Mellon New | Bny Mellon vs. Bny Mellon New | Bny Mellon vs. Bny Mellon Municipal |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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