Correlation Between Large Company and HUMANA
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By analyzing existing cross correlation between Large Pany Value and HUMANA INC, you can compare the effects of market volatilities on Large Company 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 Large Company with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Large Company and HUMANA.
Diversification Opportunities for Large Company and HUMANA
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Large and HUMANA is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Large Pany Value and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Large Company 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 Large Pany Value 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 Large Company i.e., Large Company and HUMANA go up and down completely randomly.
Pair Corralation between Large Company and HUMANA
Assuming the 90 days horizon Large Pany Value is expected to generate 1.11 times more return on investment than HUMANA. However, Large Company is 1.11 times more volatile than HUMANA INC. It trades about 0.16 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.06 per unit of risk. If you would invest 1,014 in Large Pany Value on August 27, 2024 and sell it today you would earn a total of 131.00 from holding Large Pany Value or generate 12.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Large Pany Value vs. HUMANA INC
Performance |
| Timeline |
| Large Pany Value |
| HUMANA INC |
Large Company and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Large Company and HUMANA
The main advantage of trading using opposite Large Company and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Large Company 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.| Large Company vs. International Growth Fund | Large Company vs. Growth Fund Investor | Large Company vs. Ultra Fund Investor | Large Company vs. Strategic Allocation Aggressive |
| HUMANA vs. Ultra Clean Holdings | HUMANA vs. Dream Homes Development | HUMANA vs. JBG SMITH Properties | HUMANA vs. Allegheny Technologies Incorporated |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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