Correlation Between HUMANA and Novozymes A/S
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By analyzing existing cross correlation between HUMANA INC and Novozymes AS B, you can compare the effects of market volatilities on HUMANA and Novozymes A/S 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 Novozymes A/S. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Novozymes A/S.
Diversification Opportunities for HUMANA and Novozymes A/S
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUMANA and Novozymes is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Novozymes AS B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novozymes AS B 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 Novozymes A/S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novozymes AS B has no effect on the direction of HUMANA i.e., HUMANA and Novozymes A/S go up and down completely randomly.
Pair Corralation between HUMANA and Novozymes A/S
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Novozymes A/S. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.91 times less risky than Novozymes A/S. The bond trades about -0.21 of its potential returns per unit of risk. The Novozymes AS B is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 6,199 in Novozymes AS B on August 31, 2024 and sell it today you would lose (319.00) from holding Novozymes AS B or give up 5.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Novozymes AS B
Performance |
| Timeline |
| HUMANA INC |
| Novozymes AS B |
HUMANA and Novozymes A/S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Novozymes A/S
The main advantage of trading using opposite HUMANA and Novozymes A/S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Novozymes A/S 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 Novozymes A/S will offset losses from the drop in Novozymes A/S's long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
| Novozymes A/S vs. Sherwin Williams Co | Novozymes A/S vs. Air Liquide SA | Novozymes A/S vs. LAir Liquide SA | Novozymes A/S vs. Air Products and |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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