Correlation Between HUMANA and Nokian Renkaat
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By analyzing existing cross correlation between HUMANA INC and Nokian Renkaat Oyj, you can compare the effects of market volatilities on HUMANA and Nokian Renkaat 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 Nokian Renkaat. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Nokian Renkaat.
Diversification Opportunities for HUMANA and Nokian Renkaat
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Nokian is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Nokian Renkaat Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nokian Renkaat Oyj 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 Nokian Renkaat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nokian Renkaat Oyj has no effect on the direction of HUMANA i.e., HUMANA and Nokian Renkaat go up and down completely randomly.
Pair Corralation between HUMANA and Nokian Renkaat
Assuming the 90 days trading horizon HUMANA INC is expected to generate 21.86 times more return on investment than Nokian Renkaat. However, HUMANA is 21.86 times more volatile than Nokian Renkaat Oyj. It trades about 0.07 of its potential returns per unit of risk. Nokian Renkaat Oyj is currently generating about -0.01 per unit of risk. If you would invest 7,840 in HUMANA INC on September 14, 2024 and sell it today you would lose (145.00) from holding HUMANA INC or give up 1.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.77% |
| Values | Daily Returns |
HUMANA INC vs. Nokian Renkaat Oyj
Performance |
| Timeline |
| HUMANA INC |
| Nokian Renkaat Oyj |
HUMANA and Nokian Renkaat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Nokian Renkaat
The main advantage of trading using opposite HUMANA and Nokian Renkaat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Nokian Renkaat 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 Nokian Renkaat will offset losses from the drop in Nokian Renkaat's long position.| HUMANA vs. Doubledown Interactive Co | HUMANA vs. Golden Matrix Group | HUMANA vs. Skechers USA | HUMANA vs. NetEase |
| Nokian Renkaat vs. Luminar Technologies | Nokian Renkaat vs. Mobileye Global Class | Nokian Renkaat vs. Hyliion Holdings Corp | Nokian Renkaat vs. Aeva Technologies |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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