Correlation Between HUMANA and Pro Dex
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By analyzing existing cross correlation between HUMANA INC and Pro Dex, you can compare the effects of market volatilities on HUMANA and Pro Dex 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 Pro Dex. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Pro Dex.
Diversification Opportunities for HUMANA and Pro Dex
Average diversification
The 3 months correlation between HUMANA and Pro is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Pro Dex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Dex 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 Pro Dex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro Dex has no effect on the direction of HUMANA i.e., HUMANA and Pro Dex go up and down completely randomly.
Pair Corralation between HUMANA and Pro Dex
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.16 times more return on investment than Pro Dex. However, HUMANA INC is 6.38 times less risky than Pro Dex. It trades about -0.09 of its potential returns per unit of risk. Pro Dex is currently generating about -0.22 per unit of risk. If you would invest 8,008 in HUMANA INC on November 18, 2024 and sell it today you would lose (109.00) from holding HUMANA INC or give up 1.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Pro Dex
Performance |
| Timeline |
| HUMANA INC |
| Pro Dex |
HUMANA and Pro Dex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Pro Dex
The main advantage of trading using opposite HUMANA and Pro Dex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Pro Dex 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 Pro Dex will offset losses from the drop in Pro Dex's long position.| HUMANA vs. Park Electrochemical | HUMANA vs. Allied Gaming Entertainment | HUMANA vs. Aldel Financial II | HUMANA vs. Boyd Gaming |
| Pro Dex vs. Coloplast A | Pro Dex vs. Straumann Holding AG | Pro Dex vs. Nephros | Pro Dex vs. InfuSystems Holdings |
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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