Correlation Between HUMANA and Ophmr Eml
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By analyzing existing cross correlation between HUMANA INC and Ophmr Eml Dbt, you can compare the effects of market volatilities on HUMANA and Ophmr Eml 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 Ophmr Eml. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Ophmr Eml.
Diversification Opportunities for HUMANA and Ophmr Eml
Very weak diversification
The 3 months correlation between HUMANA and Ophmr is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Ophmr Eml Dbt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ophmr Eml Dbt 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 Ophmr Eml. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ophmr Eml Dbt has no effect on the direction of HUMANA i.e., HUMANA and Ophmr Eml go up and down completely randomly.
Pair Corralation between HUMANA and Ophmr Eml
Assuming the 90 days trading horizon HUMANA INC is expected to generate 162.97 times more return on investment than Ophmr Eml. However, HUMANA is 162.97 times more volatile than Ophmr Eml Dbt. It trades about 0.07 of its potential returns per unit of risk. Ophmr Eml Dbt is currently generating about 0.04 per unit of risk. If you would invest 8,081 in HUMANA INC on August 29, 2024 and sell it today you would lose (46.00) from holding HUMANA INC or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 93.55% |
| Values | Daily Returns |
HUMANA INC vs. Ophmr Eml Dbt
Performance |
| Timeline |
| HUMANA INC |
| Ophmr Eml Dbt |
HUMANA and Ophmr Eml Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Ophmr Eml
The main advantage of trading using opposite HUMANA and Ophmr Eml positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Ophmr Eml 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 Ophmr Eml will offset losses from the drop in Ophmr Eml's long position.The idea behind HUMANA INC and Ophmr Eml Dbt 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.| Ophmr Eml vs. HUMANA INC | Ophmr Eml vs. Aquagold International | Ophmr Eml vs. Barloworld Ltd ADR | Ophmr Eml vs. Morningstar Unconstrained Allocation |
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 Stocks Directory module to find actively traded stocks across global markets.
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