Correlation Between HUMANA and Old Westbury
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By analyzing existing cross correlation between HUMANA INC and Old Westbury Short Term, you can compare the effects of market volatilities on HUMANA and Old Westbury 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 Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Old Westbury.
Diversification Opportunities for HUMANA and Old Westbury
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUMANA and Old is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Old Westbury Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Short 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 Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Short has no effect on the direction of HUMANA i.e., HUMANA and Old Westbury go up and down completely randomly.
Pair Corralation between HUMANA and Old Westbury
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Old Westbury. In addition to that, HUMANA is 5.86 times more volatile than Old Westbury Short Term. It trades about -0.07 of its total potential returns per unit of risk. Old Westbury Short Term is currently generating about 0.04 per unit of volatility. If you would invest 1,014 in Old Westbury Short Term on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Old Westbury Short Term or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
HUMANA INC vs. Old Westbury Short Term
Performance |
| Timeline |
| HUMANA INC |
| Old Westbury Short |
HUMANA and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Old Westbury
The main advantage of trading using opposite HUMANA and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury's long position.The idea behind HUMANA INC and Old Westbury Short Term 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.| Old Westbury vs. Permanent Portfolio Class | Old Westbury vs. HUMANA INC | Old Westbury vs. Aquagold International | Old Westbury 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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