Correlation Between HUMANA and Adyen NV
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By analyzing existing cross correlation between HUMANA INC and Adyen NV, you can compare the effects of market volatilities on HUMANA and Adyen NV 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 Adyen NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Adyen NV.
Diversification Opportunities for HUMANA and Adyen NV
Good diversification
The 3 months correlation between HUMANA and Adyen is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Adyen NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adyen NV 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 Adyen NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adyen NV has no effect on the direction of HUMANA i.e., HUMANA and Adyen NV go up and down completely randomly.
Pair Corralation between HUMANA and Adyen NV
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Adyen NV. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 2.44 times less risky than Adyen NV. The bond trades about -0.18 of its potential returns per unit of risk. The Adyen NV is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,443 in Adyen NV on September 12, 2024 and sell it today you would earn a total of 129.00 from holding Adyen NV or generate 8.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.88% |
Values | Daily Returns |
HUMANA INC vs. Adyen NV
Performance |
Timeline |
HUMANA INC |
Adyen NV |
HUMANA and Adyen NV Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HUMANA and Adyen NV
The main advantage of trading using opposite HUMANA and Adyen NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Adyen NV 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 Adyen NV will offset losses from the drop in Adyen NV's long position.The idea behind HUMANA INC and Adyen NV 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.Adyen NV vs. Voxtur Analytics Corp | Adyen NV vs. Fobi AI | Adyen NV vs. HUMANA INC | Adyen NV vs. Aquagold International |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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