Correlation Between Bridge Builder and HUMANA
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By analyzing existing cross correlation between Bridge Builder Smallmid and HUMANA INC, you can compare the effects of market volatilities on Bridge Builder 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 Bridge Builder with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridge Builder and HUMANA.
Diversification Opportunities for Bridge Builder and HUMANA
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bridge and HUMANA is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bridge Builder Smallmid and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Bridge Builder 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 Bridge Builder Smallmid 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 Bridge Builder i.e., Bridge Builder and HUMANA go up and down completely randomly.
Pair Corralation between Bridge Builder and HUMANA
Assuming the 90 days horizon Bridge Builder Smallmid is expected to generate 0.83 times more return on investment than HUMANA. However, Bridge Builder Smallmid is 1.21 times less risky than HUMANA. It trades about 0.31 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.16 per unit of risk. If you would invest 1,527 in Bridge Builder Smallmid on September 1, 2024 and sell it today you would earn a total of 130.00 from holding Bridge Builder Smallmid or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Bridge Builder Smallmid vs. HUMANA INC
Performance |
| Timeline |
| Bridge Builder Smallmid |
| HUMANA INC |
Bridge Builder and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridge Builder and HUMANA
The main advantage of trading using opposite Bridge Builder and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridge Builder 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.| Bridge Builder vs. Bridge Builder E | Bridge Builder vs. Bridge Builder Large | Bridge Builder vs. Bridge Builder Smallmid | Bridge Builder vs. Bridge Builder International |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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