Correlation Between Humana and Tidal Trust
Can any of the company-specific risk be diversified away by investing in both Humana and Tidal Trust 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 Tidal Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and Tidal Trust II, you can compare the effects of market volatilities on Humana and Tidal Trust 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 Tidal Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and Tidal Trust.
Diversification Opportunities for Humana and Tidal Trust
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Humana and Tidal is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and Tidal Trust II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tidal Trust II 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 Tidal Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tidal Trust II has no effect on the direction of Humana i.e., Humana and Tidal Trust go up and down completely randomly.
Pair Corralation between Humana and Tidal Trust
Considering the 90-day investment horizon Humana Inc is expected to generate 0.32 times more return on investment than Tidal Trust. However, Humana Inc is 3.16 times less risky than Tidal Trust. It trades about 0.21 of its potential returns per unit of risk. Tidal Trust II is currently generating about -0.21 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humana Inc vs. Tidal Trust II
Performance |
| Timeline |
| Humana Inc |
| Tidal Trust II |
Humana and Tidal Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and Tidal Trust
The main advantage of trading using opposite Humana and Tidal Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, Tidal Trust 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 Tidal Trust will offset losses from the drop in Tidal Trust's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| Tidal Trust vs. Tidal Trust II | Tidal Trust vs. Tidal Trust II | Tidal Trust vs. First Trust Dorsey | Tidal Trust vs. Direxion Daily META |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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