Correlation Between HUMANA and Schibsted ASA
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By analyzing existing cross correlation between HUMANA INC and Schibsted ASA ADR, you can compare the effects of market volatilities on HUMANA and Schibsted ASA 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 Schibsted ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Schibsted ASA.
Diversification Opportunities for HUMANA and Schibsted ASA
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Schibsted is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Schibsted ASA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schibsted ASA ADR 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 Schibsted ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schibsted ASA ADR has no effect on the direction of HUMANA i.e., HUMANA and Schibsted ASA go up and down completely randomly.
Pair Corralation between HUMANA and Schibsted ASA
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Schibsted ASA. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 3.56 times less risky than Schibsted ASA. The bond trades about -0.15 of its potential returns per unit of risk. The Schibsted ASA ADR is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,048 in Schibsted ASA ADR on September 2, 2024 and sell it today you would earn a total of 106.00 from holding Schibsted ASA ADR or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
HUMANA INC vs. Schibsted ASA ADR
Performance |
| Timeline |
| HUMANA INC |
| Schibsted ASA ADR |
HUMANA and Schibsted ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Schibsted ASA
The main advantage of trading using opposite HUMANA and Schibsted ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Schibsted ASA 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 Schibsted ASA will offset losses from the drop in Schibsted ASA's long position.The idea behind HUMANA INC and Schibsted ASA ADR 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.| Schibsted ASA vs. Slate Office REIT | Schibsted ASA vs. HUMANA INC | Schibsted ASA vs. Aquagold International | Schibsted ASA vs. Barloworld Ltd ADR |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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