Correlation Between HUMANA and Mirasol Resources
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By analyzing existing cross correlation between HUMANA INC and Mirasol Resources, you can compare the effects of market volatilities on HUMANA and Mirasol 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 Mirasol Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Mirasol Resources.
Diversification Opportunities for HUMANA and Mirasol Resources
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Mirasol is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Mirasol Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirasol 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 Mirasol Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirasol Resources has no effect on the direction of HUMANA i.e., HUMANA and Mirasol Resources go up and down completely randomly.
Pair Corralation between HUMANA and Mirasol Resources
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.12 times more return on investment than Mirasol Resources. However, HUMANA INC is 8.1 times less risky than Mirasol Resources. It trades about -0.03 of its potential returns per unit of risk. Mirasol Resources is currently generating about -0.01 per unit of risk. If you would invest 8,006 in HUMANA INC on September 1, 2024 and sell it today you would lose (311.00) from holding HUMANA INC or give up 3.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.87% |
| Values | Daily Returns |
HUMANA INC vs. Mirasol Resources
Performance |
| Timeline |
| HUMANA INC |
| Mirasol Resources |
HUMANA and Mirasol Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Mirasol Resources
The main advantage of trading using opposite HUMANA and Mirasol Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Mirasol 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 Mirasol Resources will offset losses from the drop in Mirasol Resources' long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Mirasol Resources vs. South32 Limited | Mirasol Resources vs. NioCorp Developments Ltd | Mirasol Resources vs. HUMANA INC | Mirasol 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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