Correlation Between HUMANA and Stone Ridge
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By analyzing existing cross correlation between HUMANA INC and Stone Ridge High, you can compare the effects of market volatilities on HUMANA and Stone Ridge 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 Stone Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Stone Ridge.
Diversification Opportunities for HUMANA and Stone Ridge
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Stone is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Stone Ridge High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Ridge High 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 Stone Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Ridge High has no effect on the direction of HUMANA i.e., HUMANA and Stone Ridge go up and down completely randomly.
Pair Corralation between HUMANA and Stone Ridge
Assuming the 90 days trading horizon HUMANA INC is expected to generate 278.14 times more return on investment than Stone Ridge. However, HUMANA is 278.14 times more volatile than Stone Ridge High. It trades about 0.07 of its potential returns per unit of risk. Stone Ridge High is currently generating about 0.24 per unit of risk. If you would invest 8,074 in HUMANA INC on September 3, 2024 and sell it today you would lose (39.00) from holding HUMANA INC or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.74% |
| Values | Daily Returns |
HUMANA INC vs. Stone Ridge High
Performance |
| Timeline |
| HUMANA INC |
| Stone Ridge High |
HUMANA and Stone Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Stone Ridge
The main advantage of trading using opposite HUMANA and Stone Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Stone Ridge 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 Stone Ridge will offset losses from the drop in Stone Ridge's long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
| Stone Ridge vs. HUMANA INC | Stone Ridge vs. Aquagold International | Stone Ridge vs. Barloworld Ltd ADR | Stone Ridge vs. Morningstar Unconstrained Allocation |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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