Correlation Between HUMANA and North Square
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By analyzing existing cross correlation between HUMANA INC and North Square Kennedy, you can compare the effects of market volatilities on HUMANA and North Square 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 North Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and North Square.
Diversification Opportunities for HUMANA and North Square
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and North is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and North Square Kennedy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Square Kennedy 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 North Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Square Kennedy has no effect on the direction of HUMANA i.e., HUMANA and North Square go up and down completely randomly.
Pair Corralation between HUMANA and North Square
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the North Square. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.43 times less risky than North Square. The bond trades about -0.18 of its potential returns per unit of risk. The North Square Kennedy is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 1,130 in North Square Kennedy on September 2, 2024 and sell it today you would earn a total of 143.00 from holding North Square Kennedy or generate 12.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. North Square Kennedy
Performance |
| Timeline |
| HUMANA INC |
| North Square Kennedy |
HUMANA and North Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and North Square
The main advantage of trading using opposite HUMANA and North Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, North Square 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 North Square will offset losses from the drop in North Square's long position.The idea behind HUMANA INC and North Square Kennedy 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.| North Square vs. North Square Investments | North Square vs. Advisory Research Strategic | North Square vs. Advisory Research All | North Square vs. Api Efficient Frontier |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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