Correlation Between HUMANA and TVA
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By analyzing existing cross correlation between HUMANA INC and TVA Group, you can compare the effects of market volatilities on HUMANA and TVA 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 TVA. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and TVA.
Diversification Opportunities for HUMANA and TVA
Very good diversification
The 3 months correlation between HUMANA and TVA is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and TVA Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TVA Group 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 TVA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TVA Group has no effect on the direction of HUMANA i.e., HUMANA and TVA go up and down completely randomly.
Pair Corralation between HUMANA and TVA
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.64 times more return on investment than TVA. However, HUMANA INC is 1.56 times less risky than TVA. It trades about -0.01 of its potential returns per unit of risk. TVA Group is currently generating about -0.08 per unit of risk. If you would invest 8,166 in HUMANA INC on August 25, 2024 and sell it today you would lose (131.00) from holding HUMANA INC or give up 1.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.94% |
| Values | Daily Returns |
HUMANA INC vs. TVA Group
Performance |
| Timeline |
| HUMANA INC |
| TVA Group |
HUMANA and TVA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and TVA
The main advantage of trading using opposite HUMANA and TVA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, TVA 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 TVA will offset losses from the drop in TVA's long position.| HUMANA vs. Deluxe | HUMANA vs. Vita Coco | HUMANA vs. Willamette Valley Vineyards | HUMANA vs. Global E Online |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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