Correlation Between HUMANA and Dynacor Gold
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By analyzing existing cross correlation between HUMANA INC and Dynacor Gold Mines, you can compare the effects of market volatilities on HUMANA and Dynacor Gold 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 Dynacor Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Dynacor Gold.
Diversification Opportunities for HUMANA and Dynacor Gold
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Dynacor is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Dynacor Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynacor Gold Mines 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 Dynacor Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynacor Gold Mines has no effect on the direction of HUMANA i.e., HUMANA and Dynacor Gold go up and down completely randomly.
Pair Corralation between HUMANA and Dynacor Gold
Assuming the 90 days trading horizon HUMANA is expected to generate 97.56 times less return on investment than Dynacor Gold. But when comparing it to its historical volatility, HUMANA INC is 2.96 times less risky than Dynacor Gold. It trades about 0.01 of its potential returns per unit of risk. Dynacor Gold Mines is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 295.00 in Dynacor Gold Mines on February 2, 2024 and sell it today you would earn a total of 78.00 from holding Dynacor Gold Mines or generate 26.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.16% |
Values | Daily Returns |
HUMANA INC vs. Dynacor Gold Mines
Performance |
Timeline |
HUMANA INC |
Dynacor Gold Mines |
HUMANA and Dynacor Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HUMANA and Dynacor Gold
The main advantage of trading using opposite HUMANA and Dynacor Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Dynacor Gold 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 Dynacor Gold will offset losses from the drop in Dynacor Gold's long position.The idea behind HUMANA INC and Dynacor Gold Mines 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.Dynacor Gold vs. Endurance Gold | Dynacor Gold vs. Klondike Gold Corp | Dynacor Gold vs. Fortitude Gold Corp | Dynacor Gold vs. Harmony Gold Mining |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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