Correlation Between Humana and American Century
Can any of the company-specific risk be diversified away by investing in both Humana and American Century 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 American Century into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and American Century ETF, you can compare the effects of market volatilities on Humana and American Century 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 American Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and American Century.
Diversification Opportunities for Humana and American Century
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Humana and American is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and American Century ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Century 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 American Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Century ETF has no effect on the direction of Humana i.e., Humana and American Century go up and down completely randomly.
Pair Corralation between Humana and American Century
Considering the 90-day investment horizon Humana Inc is expected to generate 74.28 times more return on investment than American Century. However, Humana is 74.28 times more volatile than American Century ETF. It trades about 0.19 of its potential returns per unit of risk. American Century ETF is currently generating about 0.33 per unit of risk. If you would invest 26,109 in Humana Inc on August 29, 2024 and sell it today you would earn a total of 3,450 from holding Humana Inc or generate 13.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Humana Inc vs. American Century ETF
Performance |
| Timeline |
| Humana Inc |
| American Century ETF |
Humana and American Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and American Century
The main advantage of trading using opposite Humana and American Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, American Century 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 American Century will offset losses from the drop in American Century's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| American Century vs. Valued Advisers Trust | American Century vs. Columbia Diversified Fixed | American Century vs. Principal Exchange Traded Funds | American Century vs. Doubleline Etf Trust |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |