Correlation Between JPMorgan Ultra and Humana
Can any of the company-specific risk be diversified away by investing in both JPMorgan Ultra and Humana 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 JPMorgan Ultra and Humana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Ultra Short Income and Humana Inc, you can compare the effects of market volatilities on JPMorgan Ultra and Humana 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 JPMorgan Ultra with a short position of Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Ultra and Humana.
Diversification Opportunities for JPMorgan Ultra and Humana
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between JPMorgan and Humana is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Ultra Short Income and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc and JPMorgan Ultra 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 JPMorgan Ultra Short Income are associated (or correlated) with Humana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humana Inc has no effect on the direction of JPMorgan Ultra i.e., JPMorgan Ultra and Humana go up and down completely randomly.
Pair Corralation between JPMorgan Ultra and Humana
Given the investment horizon of 90 days JPMorgan Ultra Short Income is expected to generate 0.02 times more return on investment than Humana. However, JPMorgan Ultra Short Income is 59.62 times less risky than Humana. It trades about 0.57 of its potential returns per unit of risk. Humana Inc is currently generating about -0.04 per unit of risk. If you would invest 4,552 in JPMorgan Ultra Short Income on November 28, 2024 and sell it today you would earn a total of 508.00 from holding JPMorgan Ultra Short Income or generate 11.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Ultra Short Income vs. Humana Inc
Performance |
| Timeline |
| JPMorgan Ultra Short |
| Humana Inc |
JPMorgan Ultra and Humana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Ultra and Humana
The main advantage of trading using opposite JPMorgan Ultra and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Ultra position performs unexpectedly, Humana 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 Humana will offset losses from the drop in Humana's long position.| JPMorgan Ultra vs. iShares Ultra Short Term | JPMorgan Ultra vs. PIMCO Enhanced Short | JPMorgan Ultra vs. iShares Short Maturity | JPMorgan Ultra vs. iShares Short Treasury |
| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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