Correlation Between Scisparc and HUMANA

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

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

Diversification Opportunities for Scisparc and HUMANA

-0.73

Correlation Coefficient

Scisparc  HUMANA

Pay attention - limited upside

The 3 months correlation between Scisparc and HUMANA is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Scisparc and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Scisparc 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 Scisparc 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 Scisparc i.e., Scisparc and HUMANA go up and down completely randomly.

Pair Corralation between Scisparc and HUMANA

Given the investment horizon of 90 days Scisparc is expected to under-perform the HUMANA. In addition to that, Scisparc is 14.61 times more volatile than HUMANA INC. It trades about -0.11 of its total potential returns per unit of risk. HUMANA INC is currently generating about 0.08 per unit of volatility. If you would invest  8,122  in HUMANA INC on December 26, 2024 and sell it today you would earn a total of  75.00  from holding HUMANA INC or generate 0.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.65%
Values	Daily Returns

Scisparc  vs.  HUMANA INC

Scisparc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Scisparc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Scisparc exhibited solid returns over the last few months and may actually be approaching a breakup point.

HUMANA INC

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in HUMANA INC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, HUMANA is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Scisparc and HUMANA

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

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.