Correlation Between American Century and HUMANA
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By analyzing existing cross correlation between American Century Global and HUMANA INC, you can compare the effects of market volatilities on American Century 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 American Century with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Century and HUMANA.
Diversification Opportunities for American Century and HUMANA
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and HUMANA is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding American Century Global and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and American Century 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 American Century Global 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 American Century i.e., American Century and HUMANA go up and down completely randomly.
Pair Corralation between American Century and HUMANA
Assuming the 90 days horizon American Century is expected to generate 127.31 times less return on investment than HUMANA. But when comparing it to its historical volatility, American Century Global is 86.36 times less risky than HUMANA. It trades about 0.05 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 7,980 in HUMANA INC on September 1, 2024 and sell it today you would lose (285.00) from holding HUMANA INC or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.3% |
| Values | Daily Returns |
American Century Global vs. HUMANA INC
Performance |
| Timeline |
| American Century Global |
| HUMANA INC |
American Century and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Century and HUMANA
The main advantage of trading using opposite American Century and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Century 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.| American Century vs. Transamerica Financial Life | American Century vs. Prudential Jennison Financial | American Century vs. Fidelity Advisor Financial | American Century vs. Blackrock Financial Institutions |
| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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