Correlation Between HUMANA and Orica
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Orica Ltd ADR, you can compare the effects of market volatilities on HUMANA and Orica 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 Orica. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Orica.
Diversification Opportunities for HUMANA and Orica
Weak diversification
The 3 months correlation between HUMANA and Orica is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Orica Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orica Ltd ADR 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 Orica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orica Ltd ADR has no effect on the direction of HUMANA i.e., HUMANA and Orica go up and down completely randomly.
Pair Corralation between HUMANA and Orica
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.12 times more return on investment than Orica. However, HUMANA INC is 8.61 times less risky than Orica. It trades about -0.15 of its potential returns per unit of risk. Orica Ltd ADR is currently generating about -0.08 per unit of risk. If you would invest 8,137 in HUMANA INC on August 26, 2024 and sell it today you would lose (102.00) from holding HUMANA INC or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Orica Ltd ADR
Performance |
| Timeline |
| HUMANA INC |
| Orica Ltd ADR |
HUMANA and Orica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Orica
The main advantage of trading using opposite HUMANA and Orica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Orica 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 Orica will offset losses from the drop in Orica's long position.| HUMANA vs. Balchem | HUMANA vs. Stepan Company | HUMANA vs. Videolocity International | HUMANA vs. Luxfer Holdings PLC |
| Orica vs. First Graphene | Orica vs. HUMANA INC | Orica vs. Aquagold International | Orica vs. Barloworld Ltd ADR |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |