Correlation Between AfriTin Mining and Humana

Can any of the company-specific risk be diversified away by investing in both AfriTin Mining 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 AfriTin Mining and Humana into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AfriTin Mining and Humana Inc, you can compare the effects of market volatilities on AfriTin Mining 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 AfriTin Mining with a short position of Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of AfriTin Mining and Humana.

Diversification Opportunities for AfriTin Mining and Humana

-0.25

Correlation Coefficient

AfriTin Mining  Humana

Very good diversification

The 3 months correlation between AfriTin and Humana is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding AfriTin Mining and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc and AfriTin Mining 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 AfriTin Mining 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 AfriTin Mining i.e., AfriTin Mining and Humana go up and down completely randomly.

Pair Corralation between AfriTin Mining and Humana

Assuming the 90 days trading horizon AfriTin Mining is expected to generate 2.98 times more return on investment than Humana. However, AfriTin Mining is 2.98 times more volatile than Humana Inc. It trades about 0.14 of its potential returns per unit of risk. Humana Inc is currently generating about 0.04 per unit of risk. If you would invest  212.00  in AfriTin Mining on December 29, 2024 and sell it today you would earn a total of  136.00  from holding AfriTin Mining or generate 64.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

AfriTin Mining  vs.  Humana Inc

AfriTin Mining

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AfriTin Mining are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, AfriTin Mining exhibited solid returns over the last few months and may actually be approaching a breakup point.

Humana Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Humana Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Humana may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with AfriTin Mining and Humana

The main advantage of trading using opposite AfriTin Mining and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AfriTin Mining 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.

The idea behind AfriTin Mining and Humana Inc 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.

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 CEOs Directory module to screen CEOs from public companies around the world.