Correlation Between Hawaiian Tax-free and HUMANA
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By analyzing existing cross correlation between Hawaiian Tax Free Trust and HUMANA INC, you can compare the effects of market volatilities on Hawaiian Tax-free 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 Hawaiian Tax-free with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawaiian Tax-free and HUMANA.
Diversification Opportunities for Hawaiian Tax-free and HUMANA
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hawaiian and HUMANA is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Hawaiian Tax Free Trust and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Hawaiian Tax-free 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 Hawaiian Tax Free Trust 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 Hawaiian Tax-free i.e., Hawaiian Tax-free and HUMANA go up and down completely randomly.
Pair Corralation between Hawaiian Tax-free and HUMANA
Assuming the 90 days horizon Hawaiian Tax-free is expected to generate 585.98 times less return on investment than HUMANA. But when comparing it to its historical volatility, Hawaiian Tax Free Trust is 445.93 times less risky than HUMANA. It trades about 0.05 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 7,723 in HUMANA INC on November 19, 2024 and sell it today you would earn a total of 176.00 from holding HUMANA INC or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.15% |
| Values | Daily Returns |
Hawaiian Tax Free Trust vs. HUMANA INC
Performance |
| Timeline |
| Hawaiian Tax Free |
| HUMANA INC |
Hawaiian Tax-free and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawaiian Tax-free and HUMANA
The main advantage of trading using opposite Hawaiian Tax-free and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawaiian Tax-free 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.| Hawaiian Tax-free vs. Allianzgi Technology Fund | Hawaiian Tax-free vs. Technology Fund Investor | Hawaiian Tax-free vs. Towpath Technology | Hawaiian Tax-free vs. Hennessy Technology Fund |
| HUMANA vs. ioneer Ltd American | HUMANA vs. Griffon | HUMANA vs. Hurco Companies | HUMANA vs. Perseus Mining Limited |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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