Correlation Between Humana and AlphaMark Actively
Can any of the company-specific risk be diversified away by investing in both Humana and AlphaMark Actively 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 AlphaMark Actively into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and AlphaMark Actively Managed, you can compare the effects of market volatilities on Humana and AlphaMark Actively 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 AlphaMark Actively. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and AlphaMark Actively.
Diversification Opportunities for Humana and AlphaMark Actively
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Humana and AlphaMark is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and AlphaMark Actively Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AlphaMark Actively 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 AlphaMark Actively. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AlphaMark Actively has no effect on the direction of Humana i.e., Humana and AlphaMark Actively go up and down completely randomly.
Pair Corralation between Humana and AlphaMark Actively
Considering the 90-day investment horizon Humana Inc is expected to under-perform the AlphaMark Actively. In addition to that, Humana is 1.77 times more volatile than AlphaMark Actively Managed. It trades about -0.04 of its total potential returns per unit of risk. AlphaMark Actively Managed is currently generating about 0.07 per unit of volatility. If you would invest 2,437 in AlphaMark Actively Managed on September 4, 2024 and sell it today you would earn a total of 1,108 from holding AlphaMark Actively Managed or generate 45.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.38% |
| Values | Daily Returns |
Humana Inc vs. AlphaMark Actively Managed
Performance |
| Timeline |
| Humana Inc |
| AlphaMark Actively |
Humana and AlphaMark Actively Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and AlphaMark Actively
The main advantage of trading using opposite Humana and AlphaMark Actively positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, AlphaMark Actively 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 AlphaMark Actively will offset losses from the drop in AlphaMark Actively's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| AlphaMark Actively vs. First Trust RiverFront | AlphaMark Actively vs. First Trust RiverFront | AlphaMark Actively vs. Arrow DWA Tactical | AlphaMark Actively vs. First Trust Developed |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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