Correlation Between HUMANA and Magyar Telekom
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By analyzing existing cross correlation between HUMANA INC and Magyar Telekom Plc, you can compare the effects of market volatilities on HUMANA and Magyar Telekom 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 Magyar Telekom. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Magyar Telekom.
Diversification Opportunities for HUMANA and Magyar Telekom
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Magyar is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Magyar Telekom Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magyar Telekom Plc 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 Magyar Telekom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magyar Telekom Plc has no effect on the direction of HUMANA i.e., HUMANA and Magyar Telekom go up and down completely randomly.
Pair Corralation between HUMANA and Magyar Telekom
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Magyar Telekom. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.87 times less risky than Magyar Telekom. The bond trades about -0.28 of its potential returns per unit of risk. The Magyar Telekom Plc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,443 in Magyar Telekom Plc on August 25, 2024 and sell it today you would earn a total of 72.00 from holding Magyar Telekom Plc or generate 4.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Magyar Telekom Plc
Performance |
| Timeline |
| HUMANA INC |
| Magyar Telekom Plc |
HUMANA and Magyar Telekom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Magyar Telekom
The main advantage of trading using opposite HUMANA and Magyar Telekom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Magyar Telekom 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 Magyar Telekom will offset losses from the drop in Magyar Telekom's long position.| HUMANA vs. Deluxe | HUMANA vs. Vita Coco | HUMANA vs. Willamette Valley Vineyards | HUMANA vs. Global E Online |
| Magyar Telekom vs. HUMANA INC | Magyar Telekom vs. SCOR PK | Magyar Telekom vs. Aquagold International | Magyar Telekom vs. Barloworld Ltd ADR |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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