Correlation Between Alger Small and HUMANA
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By analyzing existing cross correlation between Alger Small Cap and HUMANA INC, you can compare the effects of market volatilities on Alger Small 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 Small with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Small and HUMANA.
Diversification Opportunities for Alger Small and HUMANA
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alger and HUMANA is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Alger Small Cap and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Alger Small 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 Small Cap 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 Small i.e., Alger Small and HUMANA go up and down completely randomly.
Pair Corralation between Alger Small and HUMANA
Assuming the 90 days horizon Alger Small Cap is expected to generate 1.13 times more return on investment than HUMANA. However, Alger Small is 1.13 times more volatile than HUMANA INC. It trades about 0.38 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.16 per unit of risk. If you would invest 1,574 in Alger Small Cap on September 1, 2024 and sell it today you would earn a total of 232.00 from holding Alger Small Cap or generate 14.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Alger Small Cap vs. HUMANA INC
Performance |
| Timeline |
| Alger Small Cap |
| HUMANA INC |
Alger Small and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alger Small and HUMANA
The main advantage of trading using opposite Alger Small and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alger Small 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 Small vs. Pace High Yield | Alger Small vs. Needham Aggressive Growth | Alger Small vs. Ab High Income | Alger Small vs. T Rowe Price |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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