Correlation Between HUMANA and World Oil
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and World Oil Group, you can compare the effects of market volatilities on HUMANA and World Oil 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 World Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and World Oil.
Diversification Opportunities for HUMANA and World Oil
Average diversification
The 3 months correlation between HUMANA and World is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and World Oil Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on World Oil Group 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 World Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of World Oil Group has no effect on the direction of HUMANA i.e., HUMANA and World Oil go up and down completely randomly.
Pair Corralation between HUMANA and World Oil
Assuming the 90 days trading horizon HUMANA INC is expected to generate 7.38 times more return on investment than World Oil. However, HUMANA is 7.38 times more volatile than World Oil Group. It trades about 0.07 of its potential returns per unit of risk. World Oil Group is currently generating about 0.08 per unit of risk. If you would invest 7,953 in HUMANA INC on September 12, 2024 and sell it today you would lose (258.00) from holding HUMANA INC or give up 3.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.13% |
| Values | Daily Returns |
HUMANA INC vs. World Oil Group
Performance |
| Timeline |
| HUMANA INC |
| World Oil Group |
HUMANA and World Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and World Oil
The main advantage of trading using opposite HUMANA and World Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, World Oil 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 World Oil will offset losses from the drop in World Oil's long position.The idea behind HUMANA INC and World Oil Group 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.| World Oil vs. NH Foods Ltd | World Oil vs. Sligro Food Group | World Oil vs. Sweetgreen | World Oil vs. BBB Foods |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |