Correlation Between HUMANA and Sit International
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By analyzing existing cross correlation between HUMANA INC and Sit International Growth, you can compare the effects of market volatilities on HUMANA and Sit International 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 Sit International. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Sit International.
Diversification Opportunities for HUMANA and Sit International
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and Sit is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Sit International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit International Growth 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 Sit International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit International Growth has no effect on the direction of HUMANA i.e., HUMANA and Sit International go up and down completely randomly.
Pair Corralation between HUMANA and Sit International
Assuming the 90 days trading horizon HUMANA INC is expected to generate 111.02 times more return on investment than Sit International. However, HUMANA is 111.02 times more volatile than Sit International Growth. It trades about 0.08 of its potential returns per unit of risk. Sit International Growth is currently generating about 0.04 per unit of risk. If you would invest 7,917 in HUMANA INC on September 12, 2024 and sell it today you would lose (222.00) from holding HUMANA INC or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.86% |
| Values | Daily Returns |
HUMANA INC vs. Sit International Growth
Performance |
| Timeline |
| HUMANA INC |
| Sit International Growth |
HUMANA and Sit International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Sit International
The main advantage of trading using opposite HUMANA and Sit International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Sit International 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 Sit International will offset losses from the drop in Sit International's long position.The idea behind HUMANA INC and Sit International Growth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Sit International vs. Eip Growth And | Sit International vs. L Abbett Growth | Sit International vs. T Rowe Price | Sit International vs. Qs Growth Fund |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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