Correlation Between HUMANA and Nine Mile
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By analyzing existing cross correlation between HUMANA INC and Nine Mile Metals, you can compare the effects of market volatilities on HUMANA and Nine Mile 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 Nine Mile. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Nine Mile.
Diversification Opportunities for HUMANA and Nine Mile
Significant diversification
The 3 months correlation between HUMANA and Nine is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Nine Mile Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nine Mile Metals 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 Nine Mile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nine Mile Metals has no effect on the direction of HUMANA i.e., HUMANA and Nine Mile go up and down completely randomly.
Pair Corralation between HUMANA and Nine Mile
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.08 times more return on investment than Nine Mile. However, HUMANA INC is 12.78 times less risky than Nine Mile. It trades about -0.06 of its potential returns per unit of risk. Nine Mile Metals is currently generating about -0.05 per unit of risk. If you would invest 8,180 in HUMANA INC on December 3, 2024 and sell it today you would lose (281.00) from holding HUMANA INC or give up 3.44% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 96.88% |
Values | Daily Returns |
HUMANA INC vs. Nine Mile Metals
Performance |
Timeline |
HUMANA INC |
Nine Mile Metals |
HUMANA and Nine Mile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HUMANA and Nine Mile
The main advantage of trading using opposite HUMANA and Nine Mile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Nine Mile 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 Nine Mile will offset losses from the drop in Nine Mile's long position.HUMANA vs. Cebu Air ADR | HUMANA vs. Mesa Air Group | HUMANA vs. Vodka Brands Corp | HUMANA vs. Keurig Dr Pepper |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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