Correlation Between HUMANA and Nationwide Small
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By analyzing existing cross correlation between HUMANA INC and Nationwide Small Pany, you can compare the effects of market volatilities on HUMANA and Nationwide Small 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 Nationwide Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Nationwide Small.
Diversification Opportunities for HUMANA and Nationwide Small
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Nationwide is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Nationwide Small Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Small Pany 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 Nationwide Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Small Pany has no effect on the direction of HUMANA i.e., HUMANA and Nationwide Small go up and down completely randomly.
Pair Corralation between HUMANA and Nationwide Small
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.85 times more return on investment than Nationwide Small. However, HUMANA INC is 1.18 times less risky than Nationwide Small. It trades about -0.09 of its potential returns per unit of risk. Nationwide Small Pany is currently generating about -0.39 per unit of risk. If you would invest 8,052 in HUMANA INC on November 28, 2024 and sell it today you would lose (153.00) from holding HUMANA INC or give up 1.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUMANA INC vs. Nationwide Small Pany
Performance |
| Timeline |
| HUMANA INC |
| Nationwide Small Pany |
HUMANA and Nationwide Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Nationwide Small
The main advantage of trading using opposite HUMANA and Nationwide Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Nationwide Small 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 Nationwide Small will offset losses from the drop in Nationwide Small's long position.| HUMANA vs. Iridium Communications | HUMANA vs. Barrick Gold Corp | HUMANA vs. Sun Peak Metals | HUMANA vs. Pinterest |
| Nationwide Small vs. The Brown Capital | Nationwide Small vs. Nationwide Geneva Small | Nationwide Small vs. Dreyfusthe Boston Pany | Nationwide Small vs. Leland Thomson Reuters |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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