Correlation Between High Yield and HUMANA
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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
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between High and HUMANA is 0.6. 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 under-perform the HUMANA. But the mutual fund apears to be less risky and, when comparing its historical volatility, High Yield Municipal Fund is 3.8 times less risky than HUMANA. The mutual fund trades about -0.02 of its potential returns per unit of risk. The HUMANA INC is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 8,080 in HUMANA INC on November 4, 2024 and sell it today you would earn a total of 364.00 from holding HUMANA INC or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| 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 |
| HUMANA vs. Treasury Wine Estates | HUMANA vs. Two Harbors Investments | HUMANA vs. PepsiCo | HUMANA vs. PennantPark Investment |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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