Correlation Between HUMANA and Nicholas
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By analyzing existing cross correlation between HUMANA INC and Nicholas Ltd Edition, you can compare the effects of market volatilities on HUMANA and Nicholas 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 Nicholas. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Nicholas.
Diversification Opportunities for HUMANA and Nicholas
Excellent diversification
The 3 months correlation between HUMANA and Nicholas is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Nicholas Ltd Edition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nicholas Edition 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 Nicholas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nicholas Edition has no effect on the direction of HUMANA i.e., HUMANA and Nicholas go up and down completely randomly.
Pair Corralation between HUMANA and Nicholas
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Nicholas. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 2.13 times less risky than Nicholas. The bond trades about -0.07 of its potential returns per unit of risk. The Nicholas Ltd Edition is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 3,076 in Nicholas Ltd Edition on August 29, 2024 and sell it today you would earn a total of 231.00 from holding Nicholas Ltd Edition or generate 7.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
HUMANA INC vs. Nicholas Ltd Edition
Performance |
| Timeline |
| HUMANA INC |
| Nicholas Edition |
HUMANA and Nicholas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Nicholas
The main advantage of trading using opposite HUMANA and Nicholas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Nicholas 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 Nicholas will offset losses from the drop in Nicholas' long position.The idea behind HUMANA INC and Nicholas Ltd Edition 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.| Nicholas vs. Putnam Equity Income | Nicholas vs. Putnam Growth Opportunities | Nicholas vs. HUMANA INC | Nicholas 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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