Correlation Between Arax Holdings and HUMANA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Arax Holdings Corp and HUMANA INC, you can compare the effects of market volatilities on Arax Holdings 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 Arax Holdings with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arax Holdings and HUMANA.
Diversification Opportunities for Arax Holdings and HUMANA
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arax and HUMANA is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Arax Holdings Corp and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Arax Holdings 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 Arax Holdings Corp 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 Arax Holdings i.e., Arax Holdings and HUMANA go up and down completely randomly.
Pair Corralation between Arax Holdings and HUMANA
Given the investment horizon of 90 days Arax Holdings Corp is expected to generate 37.04 times more return on investment than HUMANA. However, Arax Holdings is 37.04 times more volatile than HUMANA INC. It trades about 0.03 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.06 per unit of risk. If you would invest 53.00 in Arax Holdings Corp on December 3, 2024 and sell it today you would lose (49.30) from holding Arax Holdings Corp or give up 93.02% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.77% |
Values | Daily Returns |
Arax Holdings Corp vs. HUMANA INC
Performance |
Timeline |
Arax Holdings Corp |
HUMANA INC |
Arax Holdings and HUMANA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Arax Holdings and HUMANA
The main advantage of trading using opposite Arax Holdings and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arax Holdings 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.Arax Holdings vs. AppTech Payments Corp | Arax Holdings vs. Arbe Robotics Ltd | Arax Holdings vs. Argentum 47 | Arax Holdings vs. Internet Infinity |
HUMANA vs. Cebu Air ADR | HUMANA vs. Mesa Air Group | HUMANA vs. Vodka Brands Corp | HUMANA vs. Keurig Dr Pepper |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |