Correlation Between Humana and Janus Henderson
Can any of the company-specific risk be diversified away by investing in both Humana and Janus Henderson 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 Henderson 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 Henderson Small, you can compare the effects of market volatilities on Humana and Janus Henderson 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 Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and Janus Henderson.
Diversification Opportunities for Humana and Janus Henderson
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Humana and Janus is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and Janus Henderson Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Small 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 Henderson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Henderson Small has no effect on the direction of Humana i.e., Humana and Janus Henderson go up and down completely randomly.
Pair Corralation between Humana and Janus Henderson
Considering the 90-day investment horizon Humana Inc is expected to under-perform the Janus Henderson. In addition to that, Humana is 1.58 times more volatile than Janus Henderson Small. It trades about -0.05 of its total potential returns per unit of risk. Janus Henderson Small is currently generating about 0.06 per unit of volatility. If you would invest 4,948 in Janus Henderson Small on August 23, 2024 and sell it today you would earn a total of 2,018 from holding Janus Henderson Small or generate 40.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Humana Inc vs. Janus Henderson Small
Performance |
| Timeline |
| Humana Inc |
| Janus Henderson Small |
Humana and Janus Henderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and Janus Henderson
The main advantage of trading using opposite Humana and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, Janus Henderson 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 Henderson will offset losses from the drop in Janus Henderson's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| Janus Henderson vs. Janus Henderson SmallMid | Janus Henderson vs. First Trust Small | Janus Henderson vs. ClearBridge Large Cap | Janus Henderson vs. First Trust Multi |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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