Correlation Between HUMANA and Ultra Clean
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By analyzing existing cross correlation between HUMANA INC and Ultra Clean Holdings, you can compare the effects of market volatilities on HUMANA and Ultra Clean 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 Ultra Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Ultra Clean.
Diversification Opportunities for HUMANA and Ultra Clean
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Ultra is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Ultra Clean Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultra Clean Holdings 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 Ultra Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultra Clean Holdings has no effect on the direction of HUMANA i.e., HUMANA and Ultra Clean go up and down completely randomly.
Pair Corralation between HUMANA and Ultra Clean
Assuming the 90 days trading horizon HUMANA INC is expected to generate 28.45 times more return on investment than Ultra Clean. However, HUMANA is 28.45 times more volatile than Ultra Clean Holdings. It trades about 0.07 of its potential returns per unit of risk. Ultra Clean Holdings is currently generating about 0.02 per unit of risk. If you would invest 8,030 in HUMANA INC on August 27, 2024 and sell it today you would earn a total of 5.00 from holding HUMANA INC or generate 0.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.75% |
| Values | Daily Returns |
HUMANA INC vs. Ultra Clean Holdings
Performance |
| Timeline |
| HUMANA INC |
| Ultra Clean Holdings |
HUMANA and Ultra Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Ultra Clean
The main advantage of trading using opposite HUMANA and Ultra Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Ultra Clean 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 Ultra Clean will offset losses from the drop in Ultra Clean's long position.| HUMANA vs. Ultra Clean Holdings | HUMANA vs. Dream Homes Development | HUMANA vs. JBG SMITH Properties | HUMANA vs. Allegheny Technologies Incorporated |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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