Correlation Between HUMANA and Papaya Growth
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By analyzing existing cross correlation between HUMANA INC and Papaya Growth Opportunity, you can compare the effects of market volatilities on HUMANA and Papaya Growth 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 Papaya Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Papaya Growth.
Diversification Opportunities for HUMANA and Papaya Growth
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Papaya is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Papaya Growth Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Papaya Growth Opportunity 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 Papaya Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Papaya Growth Opportunity has no effect on the direction of HUMANA i.e., HUMANA and Papaya Growth go up and down completely randomly.
Pair Corralation between HUMANA and Papaya Growth
Assuming the 90 days trading horizon HUMANA INC is expected to generate 119.68 times more return on investment than Papaya Growth. However, HUMANA is 119.68 times more volatile than Papaya Growth Opportunity. It trades about 0.07 of its potential returns per unit of risk. Papaya Growth Opportunity is currently generating about 0.03 per unit of risk. If you would invest 8,028 in HUMANA INC on August 30, 2024 and sell it today you would lose (333.00) from holding HUMANA INC or give up 4.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.74% |
| Values | Daily Returns |
HUMANA INC vs. Papaya Growth Opportunity
Performance |
| Timeline |
| HUMANA INC |
| Papaya Growth Opportunity |
HUMANA and Papaya Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Papaya Growth
The main advantage of trading using opposite HUMANA and Papaya Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Papaya Growth 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 Papaya Growth will offset losses from the drop in Papaya Growth's long position.The idea behind HUMANA INC and Papaya Growth Opportunity 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.| Papaya Growth vs. Patria Latin American | Papaya Growth vs. ABIVAX Socit Anonyme | Papaya Growth vs. Pinnacle Sherman Multi Strategy | Papaya Growth 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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