Correlation Between Gmo International and HUMANA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gmo International Equity and HUMANA INC, you can compare the effects of market volatilities on Gmo 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 Gmo International with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo International and HUMANA.
Diversification Opportunities for Gmo International and HUMANA
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gmo and HUMANA is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Gmo International Equity and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Gmo 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 Gmo International Equity 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 International i.e., Gmo International and HUMANA go up and down completely randomly.
Pair Corralation between Gmo International and HUMANA
Assuming the 90 days horizon Gmo International Equity is expected to generate 0.54 times more return on investment than HUMANA. However, Gmo International Equity is 1.87 times less risky than HUMANA. It trades about -0.03 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.16 per unit of risk. If you would invest 2,943 in Gmo International Equity on September 1, 2024 and sell it today you would lose (19.00) from holding Gmo International Equity or give up 0.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Gmo International Equity vs. HUMANA INC
Performance |
| Timeline |
| Gmo International Equity |
| HUMANA INC |
Gmo International and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo International and HUMANA
The main advantage of trading using opposite Gmo International and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo 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.| Gmo International vs. Blackrock High Yield | Gmo International vs. Metropolitan West High | Gmo International vs. Legg Mason Partners | Gmo International vs. Gmo High Yield |
| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |