Correlation Between Humana and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Humana and Neuberger Berman 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 Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and Neuberger Berman ETF, you can compare the effects of market volatilities on Humana and Neuberger Berman 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 Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and Neuberger Berman.
Diversification Opportunities for Humana and Neuberger Berman
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Humana and Neuberger is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and Neuberger Berman ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman ETF 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 Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman ETF has no effect on the direction of Humana i.e., Humana and Neuberger Berman go up and down completely randomly.
Pair Corralation between Humana and Neuberger Berman
Considering the 90-day investment horizon Humana Inc is expected to under-perform the Neuberger Berman. In addition to that, Humana is 16.25 times more volatile than Neuberger Berman ETF. It trades about -0.04 of its total potential returns per unit of risk. Neuberger Berman ETF is currently generating about 0.18 per unit of volatility. If you would invest 4,922 in Neuberger Berman ETF on August 29, 2024 and sell it today you would earn a total of 166.00 from holding Neuberger Berman ETF or generate 3.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 88.1% |
| Values | Daily Returns |
Humana Inc vs. Neuberger Berman ETF
Performance |
| Timeline |
| Humana Inc |
| Neuberger Berman ETF |
Humana and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and Neuberger Berman
The main advantage of trading using opposite Humana and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, Neuberger Berman 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 Neuberger Berman will offset losses from the drop in Neuberger Berman's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| Neuberger Berman vs. iShares 5 10 Year | Neuberger Berman vs. iShares 0 5 Year | Neuberger Berman vs. SPDR Barclays Short | Neuberger Berman vs. iShares Core Total |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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