Correlation Between HUMANA and Oak Woods
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By analyzing existing cross correlation between HUMANA INC and Oak Woods Acquisition, you can compare the effects of market volatilities on HUMANA and Oak Woods 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 Oak Woods. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Oak Woods.
Diversification Opportunities for HUMANA and Oak Woods
Very weak diversification
The 3 months correlation between HUMANA and Oak is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Oak Woods Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oak Woods Acquisition 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 Oak Woods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oak Woods Acquisition has no effect on the direction of HUMANA i.e., HUMANA and Oak Woods go up and down completely randomly.
Pair Corralation between HUMANA and Oak Woods
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.2 times more return on investment than Oak Woods. However, HUMANA INC is 4.99 times less risky than Oak Woods. It trades about -0.19 of its potential returns per unit of risk. Oak Woods Acquisition is currently generating about -0.16 per unit of risk. If you would invest 8,064 in HUMANA INC on September 13, 2024 and sell it today you would lose (369.00) from holding HUMANA INC or give up 4.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Oak Woods Acquisition
Performance |
| Timeline |
| HUMANA INC |
| Oak Woods Acquisition |
HUMANA and Oak Woods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Oak Woods
The main advantage of trading using opposite HUMANA and Oak Woods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Oak Woods 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 Oak Woods will offset losses from the drop in Oak Woods' long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
| Oak Woods vs. Sphere Entertainment Co | Oak Woods vs. Space Communication | Oak Woods vs. Rave Restaurant Group | Oak Woods vs. Biglari Holdings |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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