Correlation Between HUMANA and Summa Silver
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By analyzing existing cross correlation between HUMANA INC and Summa Silver Corp, you can compare the effects of market volatilities on HUMANA and Summa 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 Summa Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Summa Silver.
Diversification Opportunities for HUMANA and Summa Silver
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and Summa is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Summa Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summa Silver Corp 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 Summa Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summa Silver Corp has no effect on the direction of HUMANA i.e., HUMANA and Summa Silver go up and down completely randomly.
Pair Corralation between HUMANA and Summa Silver
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.18 times more return on investment than Summa Silver. However, HUMANA INC is 5.42 times less risky than Summa Silver. It trades about -0.15 of its potential returns per unit of risk. Summa Silver Corp is currently generating about -0.07 per unit of risk. If you would invest 8,325 in HUMANA INC on September 2, 2024 and sell it today you would lose (630.00) from holding HUMANA INC or give up 7.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
HUMANA INC vs. Summa Silver Corp
Performance |
| Timeline |
| HUMANA INC |
| Summa Silver Corp |
HUMANA and Summa Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Summa Silver
The main advantage of trading using opposite HUMANA and Summa Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Summa 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 Summa Silver will offset losses from the drop in Summa Silver's long position.The idea behind HUMANA INC and Summa Silver Corp 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.| Summa Silver vs. Defiance Silver Corp | Summa Silver vs. HUMANA INC | Summa Silver vs. SCOR PK | Summa Silver vs. Aquagold International |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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