Correlation Between Marcus and HUMANA
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By analyzing existing cross correlation between Marcus and HUMANA INC, you can compare the effects of market volatilities on Marcus 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 Marcus with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marcus and HUMANA.
Diversification Opportunities for Marcus and HUMANA
Very good diversification
The 3 months correlation between Marcus and HUMANA is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Marcus and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Marcus 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 Marcus 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 Marcus i.e., Marcus and HUMANA go up and down completely randomly.
Pair Corralation between Marcus and HUMANA
Considering the 90-day investment horizon Marcus is expected to under-perform the HUMANA. In addition to that, Marcus is 4.26 times more volatile than HUMANA INC. It trades about -0.15 of its total potential returns per unit of risk. HUMANA INC is currently generating about 0.2 per unit of volatility. If you would invest 7,789 in HUMANA INC on March 22, 2024 and sell it today you would earn a total of 393.00 from holding HUMANA INC or generate 5.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 97.62% |
Values | Daily Returns |
Marcus vs. HUMANA INC
Performance |
Timeline |
Marcus |
HUMANA INC |
Marcus and HUMANA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Marcus and HUMANA
The main advantage of trading using opposite Marcus and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marcus 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.Marcus vs. AMC Entertainment Holdings | Marcus vs. Warner Bros Discovery | Marcus vs. Paramount Global Class |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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