Correlation Between High-yield Municipal 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 Municipal 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 Municipal with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of High-yield Municipal and HUMANA.
Diversification Opportunities for High-yield Municipal and HUMANA
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between High-yield and HUMANA is -0.1. 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 Municipal 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 Municipal i.e., High-yield Municipal and HUMANA go up and down completely randomly.
Pair Corralation between High-yield Municipal and HUMANA
Assuming the 90 days horizon High-yield Municipal is expected to generate 280.25 times less return on investment than HUMANA. But when comparing it to its historical volatility, High Yield Municipal Fund is 278.12 times less risky than HUMANA. It trades about 0.07 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 7,962 in HUMANA INC on August 26, 2024 and sell it today you would earn a total of 73.00 from holding HUMANA INC or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.76% |
| Values | Daily Returns |
High Yield Municipal Fund vs. HUMANA INC
Performance |
| Timeline |
| High Yield Municipal |
| HUMANA INC |
High-yield Municipal and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High-yield Municipal and HUMANA
The main advantage of trading using opposite High-yield Municipal and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High-yield Municipal 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 Municipal vs. High Yield Fund Investor | High-yield Municipal vs. Intermediate Term Tax Free Bond | High-yield Municipal vs. California High Yield Municipal | High-yield Municipal vs. T Rowe Price |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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