Correlation Between HUMANA and OFX Group
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By analyzing existing cross correlation between HUMANA INC and OFX Group Ltd, you can compare the effects of market volatilities on HUMANA and OFX Group 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 OFX Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and OFX Group.
Diversification Opportunities for HUMANA and OFX Group
Average diversification
The 3 months correlation between HUMANA and OFX is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and OFX Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFX Group 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 OFX Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFX Group has no effect on the direction of HUMANA i.e., HUMANA and OFX Group go up and down completely randomly.
Pair Corralation between HUMANA and OFX Group
Assuming the 90 days trading horizon HUMANA INC is expected to generate 19.89 times more return on investment than OFX Group. However, HUMANA is 19.89 times more volatile than OFX Group Ltd. It trades about 0.07 of its potential returns per unit of risk. OFX Group Ltd is currently generating about -0.01 per unit of risk. If you would invest 7,862 in HUMANA INC on September 24, 2024 and sell it today you would lose (167.00) from holding HUMANA INC or give up 2.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.57% |
| Values | Daily Returns |
HUMANA INC vs. OFX Group Ltd
Performance |
| Timeline |
| HUMANA INC |
| OFX Group |
HUMANA and OFX Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and OFX Group
The main advantage of trading using opposite HUMANA and OFX Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, OFX Group 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 OFX Group will offset losses from the drop in OFX Group's long position.| HUMANA vs. Abcellera Biologics | HUMANA vs. Centessa Pharmaceuticals PLC | HUMANA vs. Regeneron Pharmaceuticals | HUMANA vs. Catalyst Pharmaceuticals |
| OFX Group vs. Watsco Inc | OFX Group vs. Fastenal Company | OFX Group vs. SiteOne Landscape Supply | OFX Group vs. Ferguson Plc |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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