Correlation Between Walmart and HUMANA
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By analyzing existing cross correlation between Walmart and HUMANA INC 395, you can compare the effects of market volatilities on Walmart and HUMANA 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 Walmart with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and HUMANA.
Diversification Opportunities for Walmart and HUMANA
Pay attention - limited upside
The 3 months correlation between Walmart and HUMANA is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and HUMANA INC 395 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC 5 and Walmart 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 Walmart are associated (or correlated) with HUMANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUMANA INC 5 has no effect on the direction of Walmart i.e., Walmart and HUMANA go up and down completely randomly.
Pair Corralation between Walmart and HUMANA
Considering the 90-day investment horizon Walmart is expected to generate 3.51 times more return on investment than HUMANA. However, Walmart is 3.51 times more volatile than HUMANA INC 395. It trades about 0.28 of its potential returns per unit of risk. HUMANA INC 395 is currently generating about -0.14 per unit of risk. If you would invest 8,075 in Walmart on August 29, 2024 and sell it today you would earn a total of 1,056 from holding Walmart or generate 13.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.7% |
| Values | Daily Returns |
Walmart vs. HUMANA INC 395
Performance |
| Timeline |
| Walmart |
| HUMANA INC 5 |
Walmart and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and HUMANA
The main advantage of trading using opposite Walmart and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, HUMANA 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 HUMANA will offset losses from the drop in HUMANA's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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