Correlation Between Alger Capital and HUMANA
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By analyzing existing cross correlation between Alger Capital Appreciation and HUMANA INC, you can compare the effects of market volatilities on Alger Capital 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 Alger Capital with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Capital and HUMANA.
Diversification Opportunities for Alger Capital and HUMANA
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alger and HUMANA is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Alger Capital Appreciation and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Alger Capital 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 Alger Capital Appreciation 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 Alger Capital i.e., Alger Capital and HUMANA go up and down completely randomly.
Pair Corralation between Alger Capital and HUMANA
Assuming the 90 days horizon Alger Capital Appreciation is expected to generate 0.77 times more return on investment than HUMANA. However, Alger Capital Appreciation is 1.31 times less risky than HUMANA. It trades about 0.41 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.16 per unit of risk. If you would invest 7,178 in Alger Capital Appreciation on September 1, 2024 and sell it today you would earn a total of 763.00 from holding Alger Capital Appreciation or generate 10.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Alger Capital Appreciation vs. HUMANA INC
Performance |
| Timeline |
| Alger Capital Apprec |
| HUMANA INC |
Alger Capital and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alger Capital and HUMANA
The main advantage of trading using opposite Alger Capital and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alger Capital 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.| Alger Capital vs. Alger Midcap Growth | Alger Capital vs. Alger Midcap Growth | Alger Capital vs. Alger Mid Cap | Alger Capital vs. Alger Small Cap |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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