Correlation Between HUMANA and Southern Silver
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By analyzing existing cross correlation between HUMANA INC and Southern Silver Exploration, you can compare the effects of market volatilities on HUMANA and Southern Silver 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 Southern Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Southern Silver.
Diversification Opportunities for HUMANA and Southern Silver
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and Southern is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Southern Silver Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Silver Expl 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 Southern Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Silver Expl has no effect on the direction of HUMANA i.e., HUMANA and Southern Silver go up and down completely randomly.
Pair Corralation between HUMANA and Southern Silver
Assuming the 90 days trading horizon HUMANA INC is expected to generate 15.28 times more return on investment than Southern Silver. However, HUMANA is 15.28 times more volatile than Southern Silver Exploration. It trades about 0.08 of its potential returns per unit of risk. Southern Silver Exploration is currently generating about 0.03 per unit of risk. If you would invest 7,917 in HUMANA INC on August 31, 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 | 97.06% |
| Values | Daily Returns |
HUMANA INC vs. Southern Silver Exploration
Performance |
| Timeline |
| HUMANA INC |
| Southern Silver Expl |
HUMANA and Southern Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Southern Silver
The main advantage of trading using opposite HUMANA and Southern Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Southern Silver 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 Southern Silver will offset losses from the drop in Southern Silver's long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
| Southern Silver vs. Scottie Resources Corp | Southern Silver vs. Defiance Silver Corp | Southern Silver vs. HUMANA INC | Southern Silver vs. SCOR PK |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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