Correlation Between HUMANA and Nt Non-us

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Can any of the company-specific risk be diversified away by investing in both HUMANA and Nt Non-us at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining HUMANA and Nt Non-us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HUMANA INC and Nt Non US Intrinsic, you can compare the effects of market volatilities on HUMANA and Nt Non-us 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 Nt Non-us. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Nt Non-us.

Diversification Opportunities for HUMANA and Nt Non-us

0.52
  Correlation Coefficient

Very weak diversification

The 3 months correlation between HUMANA and ANTUX is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Nt Non US Intrinsic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nt Non Intrinsic 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 Nt Non-us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nt Non Intrinsic has no effect on the direction of HUMANA i.e., HUMANA and Nt Non-us go up and down completely randomly.

Pair Corralation between HUMANA and Nt Non-us

Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Nt Non-us. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.11 times less risky than Nt Non-us. The bond trades about -0.15 of its potential returns per unit of risk. The Nt Non US Intrinsic is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest  993.00  in Nt Non US Intrinsic on September 2, 2024 and sell it today you would lose (60.00) from holding Nt Non US Intrinsic or give up 6.04% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy98.44%
ValuesDaily Returns

HUMANA INC  vs.  Nt Non US Intrinsic

 Performance 
       Timeline  
HUMANA INC 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days HUMANA INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for HUMANA INC investors.
Nt Non Intrinsic 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Nt Non US Intrinsic has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Nt Non-us is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

HUMANA and Nt Non-us Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with HUMANA and Nt Non-us

The main advantage of trading using opposite HUMANA and Nt Non-us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Nt Non-us 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 Nt Non-us will offset losses from the drop in Nt Non-us' long position.
The idea behind HUMANA INC and Nt Non US Intrinsic 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.
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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