Correlation Between American Funds and HUMANA
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By analyzing existing cross correlation between American Funds Growth and HUMANA INC, you can compare the effects of market volatilities on American Funds 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 American Funds with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and HUMANA.
Diversification Opportunities for American Funds and HUMANA
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and HUMANA is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Growth and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and American Funds 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 American Funds 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 American Funds i.e., American Funds and HUMANA go up and down completely randomly.
Pair Corralation between American Funds and HUMANA
Assuming the 90 days horizon American Funds is expected to generate 68.69 times less return on investment than HUMANA. But when comparing it to its historical volatility, American Funds Growth is 91.45 times less risky than HUMANA. It trades about 0.1 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 7,962 in HUMANA INC on August 24, 2024 and sell it today you would lose (267.00) from holding HUMANA INC or give up 3.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.94% |
| Values | Daily Returns |
American Funds Growth vs. HUMANA INC
Performance |
| Timeline |
| American Funds Growth |
| HUMANA INC |
American Funds and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and HUMANA
The main advantage of trading using opposite American Funds and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds 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.| American Funds vs. American Funds Growth | American Funds vs. HUMANA INC | American Funds vs. Aquagold International | American Funds vs. Barloworld Ltd ADR |
| HUMANA vs. Western Digital | HUMANA vs. Arrow Electronics | HUMANA vs. Anheuser Busch Inbev | HUMANA vs. Keurig Dr Pepper |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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