Correlation Between Humana and Fidelity Dividend
Can any of the company-specific risk be diversified away by investing in both Humana and Fidelity Dividend 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 Fidelity Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and Fidelity Dividend ETF, you can compare the effects of market volatilities on Humana and Fidelity Dividend 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 Fidelity Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and Fidelity Dividend.
Diversification Opportunities for Humana and Fidelity Dividend
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Humana and Fidelity is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and Fidelity Dividend ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Dividend ETF 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 Fidelity Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Dividend ETF has no effect on the direction of Humana i.e., Humana and Fidelity Dividend go up and down completely randomly.
Pair Corralation between Humana and Fidelity Dividend
Considering the 90-day investment horizon Humana Inc is expected to under-perform the Fidelity Dividend. In addition to that, Humana is 2.86 times more volatile than Fidelity Dividend ETF. It trades about -0.04 of its total potential returns per unit of risk. Fidelity Dividend ETF is currently generating about 0.09 per unit of volatility. If you would invest 3,935 in Fidelity Dividend ETF on September 3, 2024 and sell it today you would earn a total of 1,438 from holding Fidelity Dividend ETF or generate 36.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humana Inc vs. Fidelity Dividend ETF
Performance |
| Timeline |
| Humana Inc |
| Fidelity Dividend ETF |
Humana and Fidelity Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and Fidelity Dividend
The main advantage of trading using opposite Humana and Fidelity Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, Fidelity Dividend 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 Fidelity Dividend will offset losses from the drop in Fidelity Dividend's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| Fidelity Dividend vs. Fidelity High Dividend | Fidelity Dividend vs. Fidelity Value Factor | Fidelity Dividend vs. Fidelity Low Volatility | Fidelity Dividend vs. Fidelity Quality Factor |
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 CEOs Directory module to screen CEOs from public companies around the world.
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