Correlation Between ALT5 Sigma and Humana
Can any of the company-specific risk be diversified away by investing in both ALT5 Sigma and Humana 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 ALT5 Sigma and Humana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ALT5 Sigma and Humana Inc, you can compare the effects of market volatilities on ALT5 Sigma 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 ALT5 Sigma with a short position of Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALT5 Sigma and Humana.
Diversification Opportunities for ALT5 Sigma and Humana
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between ALT5 and Humana is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding ALT5 Sigma and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc and ALT5 Sigma 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 ALT5 Sigma 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 has no effect on the direction of ALT5 Sigma i.e., ALT5 Sigma and Humana go up and down completely randomly.
Pair Corralation between ALT5 Sigma and Humana
Given the investment horizon of 90 days ALT5 Sigma is expected to generate 3.79 times more return on investment than Humana. However, ALT5 Sigma is 3.79 times more volatile than Humana Inc. It trades about 0.06 of its potential returns per unit of risk. Humana Inc is currently generating about -0.05 per unit of risk. If you would invest 148.00 in ALT5 Sigma on September 21, 2024 and sell it today you would earn a total of 194.00 from holding ALT5 Sigma or generate 131.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
ALT5 Sigma vs. Humana Inc
Performance |
Timeline |
ALT5 Sigma |
Humana Inc |
ALT5 Sigma and Humana Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ALT5 Sigma and Humana
The main advantage of trading using opposite ALT5 Sigma and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALT5 Sigma 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.ALT5 Sigma vs. Agilent Technologies | ALT5 Sigma vs. Equillium | ALT5 Sigma vs. 23Andme Holding Co | ALT5 Sigma vs. DiaMedica Therapeutics |
Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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