Correlation Between Fixed Income and HUMANA
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By analyzing existing cross correlation between Fixed Income Shares and HUMANA INC, you can compare the effects of market volatilities on Fixed Income 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 Fixed Income with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fixed Income and HUMANA.
Diversification Opportunities for Fixed Income and HUMANA
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fixed and HUMANA is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Fixed Income Shares and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Fixed Income 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 Fixed Income Shares 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 Fixed Income i.e., Fixed Income and HUMANA go up and down completely randomly.
Pair Corralation between Fixed Income and HUMANA
Assuming the 90 days horizon Fixed Income Shares is expected to generate 0.58 times more return on investment than HUMANA. However, Fixed Income Shares is 1.73 times less risky than HUMANA. It trades about 0.17 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.05 per unit of risk. If you would invest 894.00 in Fixed Income Shares on September 4, 2024 and sell it today you would earn a total of 12.00 from holding Fixed Income Shares or generate 1.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Fixed Income Shares vs. HUMANA INC
Performance |
| Timeline |
| Fixed Income Shares |
| HUMANA INC |
Fixed Income and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fixed Income and HUMANA
The main advantage of trading using opposite Fixed Income and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fixed Income 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.| Fixed Income vs. Ab High Income | Fixed Income vs. Vanguard Star Fund | Fixed Income vs. T Rowe Price | Fixed Income vs. Artisan High Income |
| HUMANA vs. Usio Inc | HUMANA vs. MACOM Technology Solutions | HUMANA vs. Amkor Technology | HUMANA vs. Analog Devices |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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