Correlation Between HUMANA and Ssga International
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By analyzing existing cross correlation between HUMANA INC and Ssga International Stock, you can compare the effects of market volatilities on HUMANA and Ssga 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 Ssga International. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Ssga International.
Diversification Opportunities for HUMANA and Ssga International
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Ssga is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Ssga International Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssga International Stock 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 Ssga International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssga International Stock has no effect on the direction of HUMANA i.e., HUMANA and Ssga International go up and down completely randomly.
Pair Corralation between HUMANA and Ssga International
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Ssga International. In addition to that, HUMANA is 1.54 times more volatile than Ssga International Stock. It trades about -0.21 of its total potential returns per unit of risk. Ssga International Stock is currently generating about 0.04 per unit of volatility. If you would invest 1,138 in Ssga International Stock on September 1, 2024 and sell it today you would earn a total of 6.00 from holding Ssga International Stock or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Ssga International Stock
Performance |
| Timeline |
| HUMANA INC |
| Ssga International Stock |
HUMANA and Ssga International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Ssga International
The main advantage of trading using opposite HUMANA and Ssga International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Ssga 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 Ssga International will offset losses from the drop in Ssga International's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Ssga International vs. State Street Target | Ssga International vs. State Street Target | Ssga International vs. Ssga International Stock | Ssga International vs. State Street Target |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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