Correlation Between HUMANA and Sumitomo Electric
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By analyzing existing cross correlation between HUMANA INC and Sumitomo Electric Industries, you can compare the effects of market volatilities on HUMANA and Sumitomo Electric 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 Sumitomo Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Sumitomo Electric.
Diversification Opportunities for HUMANA and Sumitomo Electric
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Sumitomo is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Sumitomo Electric Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumitomo Electric 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 Sumitomo Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumitomo Electric has no effect on the direction of HUMANA i.e., HUMANA and Sumitomo Electric go up and down completely randomly.
Pair Corralation between HUMANA and Sumitomo Electric
If you would invest 1,657 in Sumitomo Electric Industries on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Sumitomo Electric Industries or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Sumitomo Electric Industries
Performance |
| Timeline |
| HUMANA INC |
| Sumitomo Electric |
HUMANA and Sumitomo Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Sumitomo Electric
The main advantage of trading using opposite HUMANA and Sumitomo Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Sumitomo Electric 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 Sumitomo Electric will offset losses from the drop in Sumitomo Electric's long position.| HUMANA vs. Doubledown Interactive Co | HUMANA vs. Golden Matrix Group | HUMANA vs. Skechers USA | HUMANA vs. NetEase |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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