Correlation Between Gmo Asset and HUMANA
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By analyzing existing cross correlation between Gmo Asset Allocation and HUMANA INC, you can compare the effects of market volatilities on Gmo Asset 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 Gmo Asset with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo Asset and HUMANA.
Diversification Opportunities for Gmo Asset and HUMANA
Poor diversification
The 3 months correlation between Gmo and HUMANA is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Gmo Asset Allocation and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Gmo Asset 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 Gmo Asset Allocation 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 Gmo Asset i.e., Gmo Asset and HUMANA go up and down completely randomly.
Pair Corralation between Gmo Asset and HUMANA
Assuming the 90 days horizon Gmo Asset is expected to generate 1213.19 times less return on investment than HUMANA. But when comparing it to its historical volatility, Gmo Asset Allocation is 76.82 times less risky than HUMANA. It trades about 0.0 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,074 in HUMANA INC on September 3, 2024 and sell it today you would lose (39.00) from holding HUMANA INC or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.74% |
| Values | Daily Returns |
Gmo Asset Allocation vs. HUMANA INC
Performance |
| Timeline |
| Gmo Asset Allocation |
| HUMANA INC |
Gmo Asset and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo Asset and HUMANA
The main advantage of trading using opposite Gmo Asset and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo Asset 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.| Gmo Asset vs. HUMANA INC | Gmo Asset vs. Aquagold International | Gmo Asset vs. Barloworld Ltd ADR | Gmo Asset vs. Morningstar Unconstrained Allocation |
| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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