Correlation Between HUMANA and Presidio Property
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Presidio Property Trust, you can compare the effects of market volatilities on HUMANA and Presidio Property 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 Presidio Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Presidio Property.
Diversification Opportunities for HUMANA and Presidio Property
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and Presidio is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Presidio Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Presidio Property Trust 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 Presidio Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Presidio Property Trust has no effect on the direction of HUMANA i.e., HUMANA and Presidio Property go up and down completely randomly.
Pair Corralation between HUMANA and Presidio Property
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Presidio Property. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 6.3 times less risky than Presidio Property. The bond trades about -0.15 of its potential returns per unit of risk. The Presidio Property Trust is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 64.00 in Presidio Property Trust on September 2, 2024 and sell it today you would earn a total of 6.00 from holding Presidio Property Trust or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
HUMANA INC vs. Presidio Property Trust
Performance |
| Timeline |
| HUMANA INC |
| Presidio Property Trust |
HUMANA and Presidio Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Presidio Property
The main advantage of trading using opposite HUMANA and Presidio Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Presidio Property 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 Presidio Property will offset losses from the drop in Presidio Property's long position.The idea behind HUMANA INC and Presidio Property Trust 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.| Presidio Property vs. Re Max Holding | Presidio Property vs. Frp Holdings Ord | Presidio Property vs. Maui Land Pineapple | Presidio Property vs. Redfin 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |