Correlation Between Ab Global and HUMANA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ab Global Real and HUMANA INC, you can compare the effects of market volatilities on Ab Global 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 Ab Global with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and HUMANA.
Diversification Opportunities for Ab Global and HUMANA
Modest diversification
The 3 months correlation between ARIIX and HUMANA is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Real and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Ab Global 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 Ab Global Real 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 Ab Global i.e., Ab Global and HUMANA go up and down completely randomly.
Pair Corralation between Ab Global and HUMANA
Assuming the 90 days horizon Ab Global Real is expected to generate 0.75 times more return on investment than HUMANA. However, Ab Global Real is 1.34 times less risky than HUMANA. It trades about -0.17 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.19 per unit of risk. If you would invest 1,072 in Ab Global Real on September 12, 2024 and sell it today you would lose (34.00) from holding Ab Global Real or give up 3.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ab Global Real vs. HUMANA INC
Performance |
| Timeline |
| Ab Global Real |
| HUMANA INC |
Ab Global and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and HUMANA
The main advantage of trading using opposite Ab Global and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global 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.| Ab Global vs. HUMANA INC | Ab Global vs. Barloworld Ltd ADR | Ab Global vs. Morningstar Unconstrained Allocation | Ab Global vs. Thrivent High Yield |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |