Correlation Between HUMANA and Scottie Resources
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By analyzing existing cross correlation between HUMANA INC and Scottie Resources Corp, you can compare the effects of market volatilities on HUMANA and Scottie Resources 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 Scottie Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Scottie Resources.
Diversification Opportunities for HUMANA and Scottie Resources
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and Scottie is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Scottie Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scottie Resources Corp 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 Scottie Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scottie Resources Corp has no effect on the direction of HUMANA i.e., HUMANA and Scottie Resources go up and down completely randomly.
Pair Corralation between HUMANA and Scottie Resources
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Scottie Resources. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 9.46 times less risky than Scottie Resources. The bond trades about -0.04 of its potential returns per unit of risk. The Scottie Resources Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Scottie Resources Corp on August 31, 2024 and sell it today you would lose (1.00) from holding Scottie Resources Corp or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.64% |
| Values | Daily Returns |
HUMANA INC vs. Scottie Resources Corp
Performance |
| Timeline |
| HUMANA INC |
| Scottie Resources Corp |
HUMANA and Scottie Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Scottie Resources
The main advantage of trading using opposite HUMANA and Scottie Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Scottie Resources 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 Scottie Resources will offset losses from the drop in Scottie Resources' long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
| Scottie Resources vs. Blackrock Silver Corp | Scottie Resources vs. AbraSilver Resource Corp | Scottie Resources vs. CMC Metals | Scottie Resources vs. Metallic Minerals 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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