Correlation Between HUMANA and Western Capital
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By analyzing existing cross correlation between HUMANA INC and Western Capital Resources, you can compare the effects of market volatilities on HUMANA and Western Capital 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 Western Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Western Capital.
Diversification Opportunities for HUMANA and Western Capital
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Western is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Western Capital Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Capital Resources 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 Western Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Capital Resources has no effect on the direction of HUMANA i.e., HUMANA and Western Capital go up and down completely randomly.
Pair Corralation between HUMANA and Western Capital
Assuming the 90 days trading horizon HUMANA INC is expected to generate 25.91 times more return on investment than Western Capital. However, HUMANA is 25.91 times more volatile than Western Capital Resources. It trades about 0.07 of its potential returns per unit of risk. Western Capital Resources is currently generating about 0.08 per unit of risk. If you would invest 8,078 in HUMANA INC on August 31, 2024 and sell it today you would lose (383.00) from holding HUMANA INC or give up 4.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.22% |
| Values | Daily Returns |
HUMANA INC vs. Western Capital Resources
Performance |
| Timeline |
| HUMANA INC |
| Western Capital Resources |
HUMANA and Western Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Western Capital
The main advantage of trading using opposite HUMANA and Western Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Western Capital 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 Western Capital will offset losses from the drop in Western Capital's long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
| Western Capital vs. Evgo Inc | Western Capital vs. Ulta Beauty | Western Capital vs. Best Buy Co | Western Capital vs. RH |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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