Correlation Between HUMANA and Paltalk
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By analyzing existing cross correlation between HUMANA INC and Paltalk, you can compare the effects of market volatilities on HUMANA and Paltalk 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 Paltalk. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Paltalk.
Diversification Opportunities for HUMANA and Paltalk
Poor diversification
The 3 months correlation between HUMANA and Paltalk is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Paltalk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paltalk 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 Paltalk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paltalk has no effect on the direction of HUMANA i.e., HUMANA and Paltalk go up and down completely randomly.
Pair Corralation between HUMANA and Paltalk
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Paltalk. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 11.61 times less risky than Paltalk. The bond trades about -0.11 of its potential returns per unit of risk. The Paltalk is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 205.00 in Paltalk on August 28, 2024 and sell it today you would lose (4.00) from holding Paltalk or give up 1.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.36% |
| Values | Daily Returns |
HUMANA INC vs. Paltalk
Performance |
| Timeline |
| HUMANA INC |
| Paltalk |
HUMANA and Paltalk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Paltalk
The main advantage of trading using opposite HUMANA and Paltalk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Paltalk 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 Paltalk will offset losses from the drop in Paltalk's long position.| HUMANA vs. Zhihu Inc ADR | HUMANA vs. National CineMedia | HUMANA vs. Comstock Holding Companies | HUMANA vs. PennantPark Investment |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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