Correlation Between Microsoft and HUMANA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Microsoft and HUMANA INC 395, you can compare the effects of market volatilities on Microsoft 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 Microsoft with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and HUMANA.
Diversification Opportunities for Microsoft and HUMANA
Very good diversification
The 3 months correlation between Microsoft and HUMANA is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft 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 Microsoft 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 Microsoft 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 Microsoft i.e., Microsoft and HUMANA go up and down completely randomly.
Pair Corralation between Microsoft and HUMANA
Given the investment horizon of 90 days Microsoft is expected to generate 4.0 times more return on investment than HUMANA. However, Microsoft is 4.0 times more volatile than HUMANA INC 395. It trades about 0.05 of its potential returns per unit of risk. HUMANA INC 395 is currently generating about -0.09 per unit of risk. If you would invest 43,048 in Microsoft on September 14, 2024 and sell it today you would earn a total of 1,679 from holding Microsoft or generate 3.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.31% |
Values | Daily Returns |
Microsoft vs. HUMANA INC 395
Performance |
Timeline |
Microsoft |
HUMANA INC 5 |
Microsoft and HUMANA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Microsoft and HUMANA
The main advantage of trading using opposite Microsoft and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft 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.Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
HUMANA vs. SEI Investments | HUMANA vs. Siriuspoint | HUMANA vs. Kinsale Capital Group | HUMANA vs. Xiabuxiabu Catering Management |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |