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
Excellent diversification
The 3 months correlation between HUMANA and Oak is -0.68. 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 under-perform the Oak Woods. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 2.55 times less risky than Oak Woods. The bond trades about -0.07 of its potential returns per unit of risk. The Oak Woods Acquisition is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,138 in Oak Woods Acquisition on August 29, 2024 and sell it today you would earn a total of 12.00 from holding Oak Woods Acquisition or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| 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.The idea behind HUMANA INC and Oak Woods Acquisition 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.| Oak Woods vs. Boyd Gaming | Oak Woods vs. Turning Point Brands | Oak Woods vs. Constellation Brands Class | Oak Woods vs. Doubledown Interactive Co |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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