Correlation Between Humana and Janus Detroit
Can any of the company-specific risk be diversified away by investing in both Humana and Janus Detroit 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 Janus Detroit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and Janus Detroit Street, you can compare the effects of market volatilities on Humana and Janus Detroit 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 Janus Detroit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and Janus Detroit.
Diversification Opportunities for Humana and Janus Detroit
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Humana and Janus is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and Janus Detroit Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Detroit Street 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 Janus Detroit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Detroit Street has no effect on the direction of Humana i.e., Humana and Janus Detroit go up and down completely randomly.
Pair Corralation between Humana and Janus Detroit
Considering the 90-day investment horizon Humana Inc is expected to generate 29.43 times more return on investment than Janus Detroit. However, Humana is 29.43 times more volatile than Janus Detroit Street. It trades about 0.19 of its potential returns per unit of risk. Janus Detroit Street is currently generating about 0.43 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 | 100.0% |
| Values | Daily Returns |
Humana Inc vs. Janus Detroit Street
Performance |
| Timeline |
| Humana Inc |
| Janus Detroit Street |
Humana and Janus Detroit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and Janus Detroit
The main advantage of trading using opposite Humana and Janus Detroit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, Janus Detroit 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 Janus Detroit will offset losses from the drop in Janus Detroit's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| Janus Detroit vs. First Trust Low | Janus Detroit vs. First Trust Senior | Janus Detroit vs. First Trust TCW | Janus Detroit vs. First Trust Tactical |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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