Correlation Between Nomura Holdings and HUMANA
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By analyzing existing cross correlation between Nomura Holdings ADR and HUMANA INC, you can compare the effects of market volatilities on Nomura Holdings 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 Nomura Holdings with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nomura Holdings and HUMANA.
Diversification Opportunities for Nomura Holdings and HUMANA
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nomura and HUMANA is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Nomura Holdings ADR and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Nomura Holdings 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 Nomura Holdings ADR 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 Nomura Holdings i.e., Nomura Holdings and HUMANA go up and down completely randomly.
Pair Corralation between Nomura Holdings and HUMANA
Considering the 90-day investment horizon Nomura Holdings ADR is expected to under-perform the HUMANA. In addition to that, Nomura Holdings is 2.33 times more volatile than HUMANA INC. It trades about -0.02 of its total potential returns per unit of risk. HUMANA INC is currently generating about 0.18 per unit of volatility. If you would invest 7,926 in HUMANA INC on March 21, 2024 and sell it today you would earn a total of 256.00 from holding HUMANA INC or generate 3.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Nomura Holdings ADR vs. HUMANA INC
Performance |
Timeline |
Nomura Holdings ADR |
HUMANA INC |
Nomura Holdings and HUMANA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nomura Holdings and HUMANA
The main advantage of trading using opposite Nomura Holdings and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nomura Holdings 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.Nomura Holdings vs. PJT Partners | Nomura Holdings vs. Houlihan Lokey | Nomura Holdings vs. Piper Sandler Companies | Nomura Holdings vs. Perella Weinberg Partners |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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