Correlation Between HUMANA and New Age
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By analyzing existing cross correlation between HUMANA INC and New Age Metals, you can compare the effects of market volatilities on HUMANA and New Age 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 New Age. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and New Age.
Diversification Opportunities for HUMANA and New Age
Excellent diversification
The 3 months correlation between HUMANA and New is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and New Age Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Age Metals 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 New Age. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Age Metals has no effect on the direction of HUMANA i.e., HUMANA and New Age go up and down completely randomly.
Pair Corralation between HUMANA and New Age
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the New Age. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 50.87 times less risky than New Age. The bond trades about -0.03 of its potential returns per unit of risk. The New Age Metals is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3.22 in New Age Metals on September 1, 2024 and sell it today you would earn a total of 2.78 from holding New Age Metals or generate 86.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.87% |
| Values | Daily Returns |
HUMANA INC vs. New Age Metals
Performance |
| Timeline |
| HUMANA INC |
| New Age Metals |
HUMANA and New Age Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and New Age
The main advantage of trading using opposite HUMANA and New Age positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, New Age 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 New Age will offset losses from the drop in New Age's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| New Age vs. South32 Limited | New Age vs. NioCorp Developments Ltd | New Age vs. HUMANA INC | New Age 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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