Correlation Between High Yield and HUMANA
Specify exactly 2 symbols:
By analyzing existing cross correlation between High Yield Municipal Fund and HUMANA INC, you can compare the effects of market volatilities on High Yield 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 High Yield with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Yield and HUMANA.
Diversification Opportunities for High Yield and HUMANA
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between High and HUMANA is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding High Yield Municipal Fund and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and High Yield 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 High Yield Municipal Fund 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 High Yield i.e., High Yield and HUMANA go up and down completely randomly.
Pair Corralation between High Yield and HUMANA
Assuming the 90 days horizon High Yield Municipal Fund is expected to generate 0.47 times more return on investment than HUMANA. However, High Yield Municipal Fund is 2.15 times less risky than HUMANA. It trades about 0.12 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.0 per unit of risk. If you would invest 808.00 in High Yield Municipal Fund on September 12, 2024 and sell it today you would earn a total of 97.00 from holding High Yield Municipal Fund or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.88% |
| Values | Daily Returns |
High Yield Municipal Fund vs. HUMANA INC
Performance |
| Timeline |
| High Yield Municipal |
| HUMANA INC |
High Yield and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Yield and HUMANA
The main advantage of trading using opposite High Yield and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Yield 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.| High Yield vs. High Yield Fund Investor | High Yield vs. Intermediate Term Tax Free Bond | High Yield vs. California High Yield Municipal | High Yield vs. T Rowe Price |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |