Correlation Between Humana and LifeGoal Investments
Can any of the company-specific risk be diversified away by investing in both Humana and LifeGoal Investments 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 LifeGoal Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and LifeGoal Investments, you can compare the effects of market volatilities on Humana and LifeGoal Investments 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 LifeGoal Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and LifeGoal Investments.
Diversification Opportunities for Humana and LifeGoal Investments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Humana and LifeGoal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and LifeGoal Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LifeGoal Investments 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 LifeGoal Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LifeGoal Investments has no effect on the direction of Humana i.e., Humana and LifeGoal Investments go up and down completely randomly.
Pair Corralation between Humana and LifeGoal Investments
Considering the 90-day investment horizon Humana Inc is expected to under-perform the LifeGoal Investments. In addition to that, Humana is 5.75 times more volatile than LifeGoal Investments. It trades about -0.04 of its total potential returns per unit of risk. LifeGoal Investments is currently generating about 0.0 per unit of volatility. If you would invest 864.00 in LifeGoal Investments on November 2, 2024 and sell it today you would earn a total of 0.00 from holding LifeGoal Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 18.02% |
| Values | Daily Returns |
Humana Inc vs. LifeGoal Investments
Performance |
| Timeline |
| Humana Inc |
| LifeGoal Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Humana and LifeGoal Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and LifeGoal Investments
The main advantage of trading using opposite Humana and LifeGoal Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, LifeGoal Investments 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 LifeGoal Investments will offset losses from the drop in LifeGoal Investments' long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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