Correlation Between HUMANA and World Precious
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By analyzing existing cross correlation between HUMANA INC and World Precious Minerals, you can compare the effects of market volatilities on HUMANA and World Precious 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 World Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and World Precious.
Diversification Opportunities for HUMANA and World Precious
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and World is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and World Precious Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on World Precious Minerals 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 World Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of World Precious Minerals has no effect on the direction of HUMANA i.e., HUMANA and World Precious go up and down completely randomly.
Pair Corralation between HUMANA and World Precious
Assuming the 90 days trading horizon HUMANA INC is expected to generate 53.9 times more return on investment than World Precious. However, HUMANA is 53.9 times more volatile than World Precious Minerals. It trades about 0.07 of its potential returns per unit of risk. World Precious Minerals is currently generating about -0.01 per unit of risk. If you would invest 7,953 in HUMANA INC on September 12, 2024 and sell it today you would lose (258.00) from holding HUMANA INC or give up 3.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.13% |
| Values | Daily Returns |
HUMANA INC vs. World Precious Minerals
Performance |
| Timeline |
| HUMANA INC |
| World Precious Minerals |
HUMANA and World Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and World Precious
The main advantage of trading using opposite HUMANA and World Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, World Precious 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 World Precious will offset losses from the drop in World Precious' long position.The idea behind HUMANA INC and World Precious Minerals 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.| World Precious vs. First Eagle Gold | World Precious vs. Oppenheimer Gold Special | World Precious vs. HUMANA INC | World Precious vs. Barloworld Ltd ADR |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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