Correlation Between HUMANA and Sumitomo Corp
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Sumitomo Corp ADR, you can compare the effects of market volatilities on HUMANA and Sumitomo Corp 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 Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Sumitomo Corp.
Diversification Opportunities for HUMANA and Sumitomo Corp
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Sumitomo is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Sumitomo Corp ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumitomo Corp ADR 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 Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumitomo Corp ADR has no effect on the direction of HUMANA i.e., HUMANA and Sumitomo Corp go up and down completely randomly.
Pair Corralation between HUMANA and Sumitomo Corp
Assuming the 90 days trading horizon HUMANA INC is expected to generate 52.0 times more return on investment than Sumitomo Corp. However, HUMANA is 52.0 times more volatile than Sumitomo Corp ADR. It trades about 0.07 of its potential returns per unit of risk. Sumitomo Corp ADR is currently generating about 0.04 per unit of risk. If you would invest 8,074 in HUMANA INC on September 4, 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 Together |
| Strength | Weak |
| Accuracy | 93.72% |
| Values | Daily Returns |
HUMANA INC vs. Sumitomo Corp ADR
Performance |
| Timeline |
| HUMANA INC |
| Sumitomo Corp ADR |
HUMANA and Sumitomo Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Sumitomo Corp
The main advantage of trading using opposite HUMANA and Sumitomo Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Sumitomo Corp 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 Corp will offset losses from the drop in Sumitomo Corp's long position.| HUMANA vs. Usio Inc | HUMANA vs. MACOM Technology Solutions | HUMANA vs. Amkor Technology | HUMANA vs. Analog Devices |
| Sumitomo Corp vs. Itochu Corp ADR | Sumitomo Corp vs. Mitsubishi Corp | Sumitomo Corp vs. ITOCHU | Sumitomo Corp vs. Marubeni Corp ADR |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |