Correlation Between HUMANA and NorthIsle Copper
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By analyzing existing cross correlation between HUMANA INC and NorthIsle Copper and, you can compare the effects of market volatilities on HUMANA and NorthIsle Copper 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 NorthIsle Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and NorthIsle Copper.
Diversification Opportunities for HUMANA and NorthIsle Copper
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and NorthIsle is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and NorthIsle Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NorthIsle Copper 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 NorthIsle Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NorthIsle Copper has no effect on the direction of HUMANA i.e., HUMANA and NorthIsle Copper go up and down completely randomly.
Pair Corralation between HUMANA and NorthIsle Copper
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the NorthIsle Copper. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 4.16 times less risky than NorthIsle Copper. The bond trades about -0.18 of its potential returns per unit of risk. The NorthIsle Copper and is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 34.00 in NorthIsle Copper and on September 2, 2024 and sell it today you would lose (2.00) from holding NorthIsle Copper and or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. NorthIsle Copper and
Performance |
| Timeline |
| HUMANA INC |
| NorthIsle Copper |
HUMANA and NorthIsle Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and NorthIsle Copper
The main advantage of trading using opposite HUMANA and NorthIsle Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, NorthIsle Copper 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 NorthIsle Copper will offset losses from the drop in NorthIsle Copper's long position.The idea behind HUMANA INC and NorthIsle Copper and 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.| NorthIsle Copper vs. South32 Limited | NorthIsle Copper vs. NioCorp Developments Ltd | NorthIsle Copper vs. HUMANA INC | NorthIsle Copper 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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