Correlation Between HUMANA and Cartesian Growth
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Cartesian Growth, you can compare the effects of market volatilities on HUMANA and Cartesian Growth 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 Cartesian Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Cartesian Growth.
Diversification Opportunities for HUMANA and Cartesian Growth
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Cartesian is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Cartesian Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cartesian Growth 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 Cartesian Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cartesian Growth has no effect on the direction of HUMANA i.e., HUMANA and Cartesian Growth go up and down completely randomly.
Pair Corralation between HUMANA and Cartesian Growth
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Cartesian Growth. In addition to that, HUMANA is 2.98 times more volatile than Cartesian Growth. It trades about -0.18 of its total potential returns per unit of risk. Cartesian Growth is currently generating about 0.13 per unit of volatility. If you would invest 1,138 in Cartesian Growth on September 13, 2024 and sell it today you would earn a total of 25.00 from holding Cartesian Growth or generate 2.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.83% |
Values | Daily Returns |
HUMANA INC vs. Cartesian Growth
Performance |
Timeline |
HUMANA INC |
Cartesian Growth |
HUMANA and Cartesian Growth Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HUMANA and Cartesian Growth
The main advantage of trading using opposite HUMANA and Cartesian Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Cartesian Growth 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 Cartesian Growth will offset losses from the drop in Cartesian Growth's long position.HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
Cartesian Growth vs. Investcorp India Acquisition | Cartesian Growth vs. Rf Acquisition Corp | Cartesian Growth vs. Metal Sky Star |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |