Correlation Between Fidelity International and HUMANA
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By analyzing existing cross correlation between Fidelity International Growth and HUMANA INC, you can compare the effects of market volatilities on Fidelity International 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 International with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity International and HUMANA.
Diversification Opportunities for Fidelity International and HUMANA
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fidelity and HUMANA is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity International Growth and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Fidelity International 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 International Growth 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 International i.e., Fidelity International and HUMANA go up and down completely randomly.
Pair Corralation between Fidelity International and HUMANA
Assuming the 90 days horizon Fidelity International Growth is expected to generate 1.39 times more return on investment than HUMANA. However, Fidelity International is 1.39 times more volatile than HUMANA INC. It trades about 0.0 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.09 per unit of risk. If you would invest 2,086 in Fidelity International Growth on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Fidelity International Growth or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
Fidelity International Growth vs. HUMANA INC
Performance |
| Timeline |
| Fidelity International |
| HUMANA INC |
Fidelity International and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity International and HUMANA
The main advantage of trading using opposite Fidelity International and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity International 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.The idea behind Fidelity International Growth and HUMANA INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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