Correlation Between Humana and PGIM ETF
Can any of the company-specific risk be diversified away by investing in both Humana and PGIM ETF 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 PGIM ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and PGIM ETF Trust, you can compare the effects of market volatilities on Humana and PGIM ETF 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 PGIM ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and PGIM ETF.
Diversification Opportunities for Humana and PGIM ETF
Excellent diversification
The 3 months correlation between Humana and PGIM is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and PGIM ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGIM ETF Trust 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 PGIM ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGIM ETF Trust has no effect on the direction of Humana i.e., Humana and PGIM ETF go up and down completely randomly.
Pair Corralation between Humana and PGIM ETF
Considering the 90-day investment horizon Humana Inc is expected to generate 62.52 times more return on investment than PGIM ETF. However, Humana is 62.52 times more volatile than PGIM ETF Trust. It trades about 0.21 of its potential returns per unit of risk. PGIM ETF Trust is currently generating about 0.58 per unit of risk. If you would invest 26,073 in Humana Inc on August 26, 2024 and sell it today you would earn a total of 3,738 from holding Humana Inc or generate 14.34% 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. PGIM ETF Trust
Performance |
| Timeline |
| Humana Inc |
| PGIM ETF Trust |
Humana and PGIM ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and PGIM ETF
The main advantage of trading using opposite Humana and PGIM ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, PGIM ETF 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 PGIM ETF will offset losses from the drop in PGIM ETF's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| PGIM ETF vs. First Trust Exchange Traded | PGIM ETF vs. Vanguard Intermediate Term Treasury | PGIM ETF vs. Vanguard Long Term Treasury | PGIM ETF vs. Vanguard Short Term Treasury |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |