Correlation Between Humana and Kurv Technology
Can any of the company-specific risk be diversified away by investing in both Humana and Kurv Technology 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 Kurv Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and Kurv Technology Titans, you can compare the effects of market volatilities on Humana and Kurv Technology 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 Kurv Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and Kurv Technology.
Diversification Opportunities for Humana and Kurv Technology
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Humana and Kurv is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and Kurv Technology Titans in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kurv Technology Titans 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 Kurv Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kurv Technology Titans has no effect on the direction of Humana i.e., Humana and Kurv Technology go up and down completely randomly.
Pair Corralation between Humana and Kurv Technology
Considering the 90-day investment horizon Humana Inc is expected to generate 2.55 times more return on investment than Kurv Technology. However, Humana is 2.55 times more volatile than Kurv Technology Titans. It trades about 0.23 of its potential returns per unit of risk. Kurv Technology Titans is currently generating about 0.25 per unit of risk. If you would invest 25,555 in Humana Inc on September 4, 2024 and sell it today you would earn a total of 3,758 from holding Humana Inc or generate 14.71% 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. Kurv Technology Titans
Performance |
| Timeline |
| Humana Inc |
| Kurv Technology Titans |
Humana and Kurv Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and Kurv Technology
The main advantage of trading using opposite Humana and Kurv Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, Kurv Technology 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 Kurv Technology will offset losses from the drop in Kurv Technology's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| Kurv Technology vs. Vanguard Information Technology | Kurv Technology vs. Technology Select Sector | Kurv Technology vs. iShares Technology ETF | Kurv Technology vs. VanEck Semiconductor ETF |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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