Correlation Between Alcon AG and Humana
Can any of the company-specific risk be diversified away by investing in both Alcon AG and Humana 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 Alcon AG and Humana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alcon AG and Humana Inc, you can compare the effects of market volatilities on Alcon AG 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 Alcon AG with a short position of Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcon AG and Humana.
Diversification Opportunities for Alcon AG and Humana
Very good diversification
The 3 months correlation between Alcon and Humana is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Alcon AG and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc and Alcon AG 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 Alcon AG 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 Alcon AG i.e., Alcon AG and Humana go up and down completely randomly.
Pair Corralation between Alcon AG and Humana
Considering the 90-day investment horizon Alcon AG is expected to generate 0.57 times more return on investment than Humana. However, Alcon AG is 1.75 times less risky than Humana. It trades about 0.11 of its potential returns per unit of risk. Humana Inc is currently generating about -0.01 per unit of risk. If you would invest 7,453 in Alcon AG on October 9, 2025 and sell it today you would earn a total of 728.00 from holding Alcon AG or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alcon AG vs. Humana Inc
Performance |
| Timeline |
| Alcon AG |
| Humana Inc |
Alcon AG and Humana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcon AG and Humana
The main advantage of trading using opposite Alcon AG and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcon AG 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.| Alcon AG vs. ResMed Inc | Alcon AG vs. IQVIA Holdings | Alcon AG vs. Agilent Technologies | Alcon AG vs. GE HealthCare Technologies |
| Humana vs. GE HealthCare Technologies | Humana vs. ResMed Inc | Humana vs. IQVIA Holdings | Humana vs. Alcon AG |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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