Correlation Between HUMANA and Rainier International
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By analyzing existing cross correlation between HUMANA INC and Rainier International Discovery, you can compare the effects of market volatilities on HUMANA and Rainier International 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 Rainier International. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Rainier International.
Diversification Opportunities for HUMANA and Rainier International
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and Rainier is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Rainier International Discover in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rainier International 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 Rainier International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rainier International has no effect on the direction of HUMANA i.e., HUMANA and Rainier International go up and down completely randomly.
Pair Corralation between HUMANA and Rainier International
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Rainier International. In addition to that, HUMANA is 1.04 times more volatile than Rainier International Discovery. It trades about -0.05 of its total potential returns per unit of risk. Rainier International Discovery is currently generating about 0.16 per unit of volatility. If you would invest 2,329 in Rainier International Discovery on September 4, 2024 and sell it today you would earn a total of 51.00 from holding Rainier International Discovery or generate 2.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
HUMANA INC vs. Rainier International Discover
Performance |
| Timeline |
| HUMANA INC |
| Rainier International |
HUMANA and Rainier International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Rainier International
The main advantage of trading using opposite HUMANA and Rainier International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Rainier International 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 Rainier International will offset losses from the drop in Rainier International's long position.| HUMANA vs. Usio Inc | HUMANA vs. MACOM Technology Solutions | HUMANA vs. Amkor Technology | HUMANA vs. Analog Devices |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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