Correlation Between Humana and UBS AG
Can any of the company-specific risk be diversified away by investing in both Humana and UBS AG 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 UBS AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and UBS AG London, you can compare the effects of market volatilities on Humana and UBS AG 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 UBS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and UBS AG.
Diversification Opportunities for Humana and UBS AG
Very good diversification
The 3 months correlation between Humana and UBS is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and UBS AG London in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS AG London 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 UBS AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS AG London has no effect on the direction of Humana i.e., Humana and UBS AG go up and down completely randomly.
Pair Corralation between Humana and UBS AG
Considering the 90-day investment horizon Humana is expected to generate 1.02 times less return on investment than UBS AG. In addition to that, Humana is 1.65 times more volatile than UBS AG London. It trades about 0.21 of its total potential returns per unit of risk. UBS AG London is currently generating about 0.36 per unit of volatility. If you would invest 4,821 in UBS AG London on August 30, 2024 and sell it today you would earn a total of 784.00 from holding UBS AG London or generate 16.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humana Inc vs. UBS AG London
Performance |
| Timeline |
| Humana Inc |
| UBS AG London |
Humana and UBS AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and UBS AG
The main advantage of trading using opposite Humana and UBS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, UBS AG 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 UBS AG will offset losses from the drop in UBS AG's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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