Correlation Between Fidelity Freedom and HUMANA
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By analyzing existing cross correlation between Fidelity Freedom 2040 and HUMANA INC, you can compare the effects of market volatilities on Fidelity Freedom 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 Fidelity Freedom with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Freedom and HUMANA.
Diversification Opportunities for Fidelity Freedom and HUMANA
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and HUMANA is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Freedom 2040 and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Fidelity Freedom 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 Fidelity Freedom 2040 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 Fidelity Freedom i.e., Fidelity Freedom and HUMANA go up and down completely randomly.
Pair Corralation between Fidelity Freedom and HUMANA
Assuming the 90 days horizon Fidelity Freedom 2040 is expected to generate 0.48 times more return on investment than HUMANA. However, Fidelity Freedom 2040 is 2.09 times less risky than HUMANA. It trades about 0.22 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.21 per unit of risk. If you would invest 1,183 in Fidelity Freedom 2040 on September 1, 2024 and sell it today you would earn a total of 30.00 from holding Fidelity Freedom 2040 or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Fidelity Freedom 2040 vs. HUMANA INC
Performance |
| Timeline |
| Fidelity Freedom 2040 |
| HUMANA INC |
Fidelity Freedom and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Freedom and HUMANA
The main advantage of trading using opposite Fidelity Freedom and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Freedom 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.| Fidelity Freedom vs. Fidelity Freedom 2030 | Fidelity Freedom vs. Fidelity Freedom 2010 | Fidelity Freedom vs. Fidelity Freedom Income | Fidelity Freedom vs. Fidelity Freedom 2020 |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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