Correlation Between HUMANA and R1 RCM
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By analyzing existing cross correlation between HUMANA INC and R1 RCM Inc, you can compare the effects of market volatilities on HUMANA and R1 RCM 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 R1 RCM. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and R1 RCM.
Diversification Opportunities for HUMANA and R1 RCM
Pay attention - limited upside
The 3 months correlation between HUMANA and RCM is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and R1 RCM Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on R1 RCM Inc 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 R1 RCM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of R1 RCM Inc has no effect on the direction of HUMANA i.e., HUMANA and R1 RCM go up and down completely randomly.
Pair Corralation between HUMANA and R1 RCM
Assuming the 90 days trading horizon HUMANA INC is expected to generate 29.08 times more return on investment than R1 RCM. However, HUMANA is 29.08 times more volatile than R1 RCM Inc. It trades about 0.07 of its potential returns per unit of risk. R1 RCM Inc is currently generating about 0.04 per unit of risk. If you would invest 8,033 in HUMANA INC on August 23, 2024 and sell it today you would earn a total of 2.00 from holding HUMANA INC or generate 0.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.13% |
| Values | Daily Returns |
HUMANA INC vs. R1 RCM Inc
Performance |
| Timeline |
| HUMANA INC |
| R1 RCM Inc |
HUMANA and R1 RCM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and R1 RCM
The main advantage of trading using opposite HUMANA and R1 RCM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, R1 RCM 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 R1 RCM will offset losses from the drop in R1 RCM's long position.| HUMANA vs. Western Digital | HUMANA vs. Arrow Electronics | HUMANA vs. Anheuser Busch Inbev | HUMANA vs. Keurig Dr Pepper |
| R1 RCM vs. National Research Corp | R1 RCM vs. Definitive Healthcare Corp | R1 RCM vs. HealthStream | R1 RCM vs. Evolent Health |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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