Correlation Between California High-yield and HUMANA
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By analyzing existing cross correlation between California High Yield Municipal and HUMANA INC, you can compare the effects of market volatilities on California High-yield 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 California High-yield with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of California High-yield and HUMANA.
Diversification Opportunities for California High-yield and HUMANA
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between California and HUMANA is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding California High Yield Municipa and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and California High-yield 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 California High Yield Municipal 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 California High-yield i.e., California High-yield and HUMANA go up and down completely randomly.
Pair Corralation between California High-yield and HUMANA
Assuming the 90 days horizon California High Yield Municipal is expected to generate 0.51 times more return on investment than HUMANA. However, California High Yield Municipal is 1.95 times less risky than HUMANA. It trades about 0.16 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.07 per unit of risk. If you would invest 980.00 in California High Yield Municipal on August 28, 2024 and sell it today you would earn a total of 11.00 from holding California High Yield Municipal or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
California High Yield Municipa vs. HUMANA INC
Performance |
| Timeline |
| California High Yield |
| HUMANA INC |
California High-yield and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with California High-yield and HUMANA
The main advantage of trading using opposite California High-yield and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if California High-yield 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.| California High-yield vs. Crafword Dividend Growth | California High-yield vs. Morningstar Growth Etf | California High-yield vs. Ab Centrated Growth | California High-yield vs. Chase Growth Fund |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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