Correlation Between Humana and Amplify International
Can any of the company-specific risk be diversified away by investing in both Humana and Amplify International 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 Amplify International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and Amplify International Enhanced, you can compare the effects of market volatilities on Humana and Amplify International 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 Amplify International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and Amplify International.
Diversification Opportunities for Humana and Amplify International
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Humana and Amplify is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and Amplify International Enhanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify International 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 Amplify International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify International has no effect on the direction of Humana i.e., Humana and Amplify International go up and down completely randomly.
Pair Corralation between Humana and Amplify International
Considering the 90-day investment horizon Humana Inc is expected to under-perform the Amplify International. In addition to that, Humana is 2.7 times more volatile than Amplify International Enhanced. It trades about -0.04 of its total potential returns per unit of risk. Amplify International Enhanced is currently generating about 0.06 per unit of volatility. If you would invest 2,596 in Amplify International Enhanced on September 12, 2024 and sell it today you would earn a total of 490.00 from holding Amplify International Enhanced or generate 18.88% 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. Amplify International Enhanced
Performance |
| Timeline |
| Humana Inc |
| Amplify International |
Humana and Amplify International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and Amplify International
The main advantage of trading using opposite Humana and Amplify International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, Amplify International 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 Amplify International will offset losses from the drop in Amplify International's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| Amplify International vs. Amplify ETF Trust | Amplify International vs. Amplify CWP Enhanced | Amplify International vs. Schwab International Dividend | Amplify International vs. iShares 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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