Correlation Between HUMANA and Aquagold International

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Can any of the company-specific risk be diversified away by investing in both HUMANA and Aquagold International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining HUMANA and Aquagold International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HUMANA INC and Aquagold International, you can compare the effects of market volatilities on HUMANA and Aquagold International 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 Aquagold International. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Aquagold International.

Diversification Opportunities for HUMANA and Aquagold International

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between HUMANA and Aquagold is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Aquagold International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquagold International 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 Aquagold International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquagold International has no effect on the direction of HUMANA i.e., HUMANA and Aquagold International go up and down completely randomly.

Pair Corralation between HUMANA and Aquagold International

If you would invest  7,867  in HUMANA INC on March 27, 2024 and sell it today you would earn a total of  315.00  from holding HUMANA INC or generate 4.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

HUMANA INC  vs.  Aquagold International

 Performance 
       Timeline  
HUMANA INC 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in HUMANA INC are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, HUMANA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Aquagold International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Aquagold International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Aquagold International is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

HUMANA and Aquagold International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with HUMANA and Aquagold International

The main advantage of trading using opposite HUMANA and Aquagold International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Aquagold International 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 Aquagold International will offset losses from the drop in Aquagold International's long position.
The idea behind HUMANA INC and Aquagold International 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.
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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