Correlation Between Humana and AB Active
Can any of the company-specific risk be diversified away by investing in both Humana and AB Active 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 AB Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and AB Active ETFs,, you can compare the effects of market volatilities on Humana and AB Active 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 AB Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and AB Active.
Diversification Opportunities for Humana and AB Active
Very good diversification
The 3 months correlation between Humana and SYFI is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and AB Active ETFs, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB Active ETFs, 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 AB Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB Active ETFs, has no effect on the direction of Humana i.e., Humana and AB Active go up and down completely randomly.
Pair Corralation between Humana and AB Active
Considering the 90-day investment horizon Humana Inc is expected to under-perform the AB Active. In addition to that, Humana is 10.0 times more volatile than AB Active ETFs,. It trades about -0.04 of its total potential returns per unit of risk. AB Active ETFs, is currently generating about 0.18 per unit of volatility. If you would invest 3,427 in AB Active ETFs, on September 1, 2024 and sell it today you would earn a total of 168.00 from holding AB Active ETFs, or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 26.81% |
| Values | Daily Returns |
Humana Inc vs. AB Active ETFs,
Performance |
| Timeline |
| Humana Inc |
| AB Active ETFs, |
Humana and AB Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and AB Active
The main advantage of trading using opposite Humana and AB Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, AB Active 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 AB Active will offset losses from the drop in AB Active's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| AB Active vs. BlackRock High Yield | AB Active vs. Hartford Short Duration | AB Active vs. SSGA Active Trust | AB Active vs. Aquagold International |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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