Correlation Between Humana and MarketDesk Focused
Can any of the company-specific risk be diversified away by investing in both Humana and MarketDesk Focused at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Humana and MarketDesk Focused into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and MarketDesk Focused Dividend, you can compare the effects of market volatilities on Humana and MarketDesk Focused 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 Humana with a short position of MarketDesk Focused. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and MarketDesk Focused.
Diversification Opportunities for Humana and MarketDesk Focused
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Humana and MarketDesk is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and MarketDesk Focused Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MarketDesk Focused and Humana 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 Humana Inc are associated (or correlated) with MarketDesk Focused. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MarketDesk Focused has no effect on the direction of Humana i.e., Humana and MarketDesk Focused go up and down completely randomly.
Pair Corralation between Humana and MarketDesk Focused
Considering the 90-day investment horizon Humana Inc is expected to generate 4.14 times more return on investment than MarketDesk Focused. However, Humana is 4.14 times more volatile than MarketDesk Focused Dividend. It trades about 0.17 of its potential returns per unit of risk. MarketDesk Focused Dividend is currently generating about 0.1 per unit of risk. If you would invest 26,632 in Humana Inc on August 31, 2024 and sell it today you would earn a total of 3,036 from holding Humana Inc or generate 11.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Humana Inc vs. MarketDesk Focused Dividend
Performance |
| Timeline |
| Humana Inc |
| MarketDesk Focused |
Humana and MarketDesk Focused Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and MarketDesk Focused
The main advantage of trading using opposite Humana and MarketDesk Focused positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, MarketDesk Focused 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 MarketDesk Focused will offset losses from the drop in MarketDesk Focused's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| MarketDesk Focused vs. BlackRock High Yield | MarketDesk Focused vs. Hartford Short Duration | MarketDesk Focused vs. SSGA Active Trust | MarketDesk Focused vs. Aquagold International |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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