Correlation Between HUMANA and Sibanye Stillwater
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By analyzing existing cross correlation between HUMANA INC and Sibanye Stillwater Limited, you can compare the effects of market volatilities on HUMANA and Sibanye Stillwater 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 Sibanye Stillwater. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Sibanye Stillwater.
Diversification Opportunities for HUMANA and Sibanye Stillwater
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and Sibanye is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Sibanye Stillwater Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sibanye Stillwater 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 Sibanye Stillwater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sibanye Stillwater has no effect on the direction of HUMANA i.e., HUMANA and Sibanye Stillwater go up and down completely randomly.
Pair Corralation between HUMANA and Sibanye Stillwater
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.42 times more return on investment than Sibanye Stillwater. However, HUMANA INC is 2.39 times less risky than Sibanye Stillwater. It trades about 0.25 of its potential returns per unit of risk. Sibanye Stillwater Limited is currently generating about -0.05 per unit of risk. If you would invest 7,944 in HUMANA INC on October 22, 2024 and sell it today you would earn a total of 500.00 from holding HUMANA INC or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
HUMANA INC vs. Sibanye Stillwater Limited
Performance |
| Timeline |
| HUMANA INC |
| Sibanye Stillwater |
HUMANA and Sibanye Stillwater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Sibanye Stillwater
The main advantage of trading using opposite HUMANA and Sibanye Stillwater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Sibanye Stillwater 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 Sibanye Stillwater will offset losses from the drop in Sibanye Stillwater's long position.| HUMANA vs. Regeneron Pharmaceuticals | HUMANA vs. BioNTech SE | HUMANA vs. Genfit | HUMANA vs. Exchange Bankshares |
| Sibanye Stillwater vs. Vior Inc | Sibanye Stillwater vs. Peloton Minerals | Sibanye Stillwater vs. BTU Metals Corp | Sibanye Stillwater vs. Palamina Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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