Correlation Between Humana and SPDR Bloomberg
Can any of the company-specific risk be diversified away by investing in both Humana and SPDR Bloomberg 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 SPDR Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and SPDR Bloomberg Investment, you can compare the effects of market volatilities on Humana and SPDR Bloomberg 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 SPDR Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and SPDR Bloomberg.
Diversification Opportunities for Humana and SPDR Bloomberg
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Humana and SPDR is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and SPDR Bloomberg Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg Investment 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 SPDR Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bloomberg Investment has no effect on the direction of Humana i.e., Humana and SPDR Bloomberg go up and down completely randomly.
Pair Corralation between Humana and SPDR Bloomberg
Considering the 90-day investment horizon Humana Inc is expected to generate 79.01 times more return on investment than SPDR Bloomberg. However, Humana is 79.01 times more volatile than SPDR Bloomberg Investment. It trades about 0.21 of its potential returns per unit of risk. SPDR Bloomberg Investment is currently generating about 0.37 per unit of risk. If you would invest 26,073 in Humana Inc on August 26, 2024 and sell it today you would earn a total of 3,738 from holding Humana Inc or generate 14.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humana Inc vs. SPDR Bloomberg Investment
Performance |
| Timeline |
| Humana Inc |
| SPDR Bloomberg Investment |
Humana and SPDR Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and SPDR Bloomberg
The main advantage of trading using opposite Humana and SPDR Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, SPDR Bloomberg 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 SPDR Bloomberg will offset losses from the drop in SPDR Bloomberg's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| SPDR Bloomberg vs. iShares Floating Rate | SPDR Bloomberg vs. VanEck Investment Grade | SPDR Bloomberg vs. SPDR Blackstone Senior | SPDR Bloomberg vs. Invesco Ultra Short |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |