Correlation Between HUMANA and Sharp Corp
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By analyzing existing cross correlation between HUMANA INC and Sharp Corp ADR, you can compare the effects of market volatilities on HUMANA and Sharp Corp 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 Sharp Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Sharp Corp.
Diversification Opportunities for HUMANA and Sharp Corp
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and Sharp is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Sharp Corp ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharp Corp 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 Sharp Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharp Corp ADR has no effect on the direction of HUMANA i.e., HUMANA and Sharp Corp go up and down completely randomly.
Pair Corralation between HUMANA and Sharp Corp
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Sharp Corp. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 7.13 times less risky than Sharp Corp. The bond trades about -0.06 of its potential returns per unit of risk. The Sharp Corp ADR is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 155.00 in Sharp Corp ADR on August 30, 2024 and sell it today you would earn a total of 3.00 from holding Sharp Corp ADR or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
HUMANA INC vs. Sharp Corp ADR
Performance |
| Timeline |
| HUMANA INC |
| Sharp Corp ADR |
HUMANA and Sharp Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Sharp Corp
The main advantage of trading using opposite HUMANA and Sharp Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Sharp Corp 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 Sharp Corp will offset losses from the drop in Sharp Corp's long position.| HUMANA vs. Brandywine Realty Trust | HUMANA vs. Celsius Holdings | HUMANA vs. Uber Technologies | HUMANA vs. PepsiCo |
| Sharp Corp vs. Alsea SAB de | Sharp Corp vs. Marstons PLC | Sharp Corp vs. Bagger Daves Burger | Sharp Corp vs. Marstons PLC |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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