Correlation Between HUMANA and Sentinel International
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By analyzing existing cross correlation between HUMANA INC and Sentinel International Equity, you can compare the effects of market volatilities on HUMANA and Sentinel 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 Sentinel International. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Sentinel International.
Diversification Opportunities for HUMANA and Sentinel International
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and Sentinel is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Sentinel International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentinel International 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 Sentinel International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentinel International has no effect on the direction of HUMANA i.e., HUMANA and Sentinel International go up and down completely randomly.
Pair Corralation between HUMANA and Sentinel International
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.91 times more return on investment than Sentinel International. However, HUMANA INC is 1.1 times less risky than Sentinel International. It trades about -0.16 of its potential returns per unit of risk. Sentinel International Equity is currently generating about -0.19 per unit of risk. If you would invest 8,403 in HUMANA INC on August 30, 2024 and sell it today you would lose (368.00) from holding HUMANA INC or give up 4.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.02% |
| Values | Daily Returns |
HUMANA INC vs. Sentinel International Equity
Performance |
| Timeline |
| HUMANA INC |
| Sentinel International |
HUMANA and Sentinel International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Sentinel International
The main advantage of trading using opposite HUMANA and Sentinel International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Sentinel 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 Sentinel International will offset losses from the drop in Sentinel International's long position.| HUMANA vs. Brandywine Realty Trust | HUMANA vs. Celsius Holdings | HUMANA vs. Uber Technologies | HUMANA vs. PepsiCo |
| Sentinel International vs. HUMANA INC | Sentinel International vs. Aquagold International | Sentinel International vs. Barloworld Ltd ADR | Sentinel International vs. Morningstar Unconstrained Allocation |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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