Correlation Between L Abbett and HUMANA
Specify exactly 2 symbols:
By analyzing existing cross correlation between L Abbett Growth and HUMANA INC, you can compare the effects of market volatilities on L Abbett 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 L Abbett with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of L Abbett and HUMANA.
Diversification Opportunities for L Abbett and HUMANA
Pay attention - limited upside
The 3 months correlation between LGLUX and HUMANA is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding L Abbett Growth and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and L Abbett 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 L Abbett Growth 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 L Abbett i.e., L Abbett and HUMANA go up and down completely randomly.
Pair Corralation between L Abbett and HUMANA
Assuming the 90 days horizon L Abbett Growth is expected to generate 0.85 times more return on investment than HUMANA. However, L Abbett Growth is 1.17 times less risky than HUMANA. It trades about 0.42 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.16 per unit of risk. If you would invest 4,494 in L Abbett Growth on September 1, 2024 and sell it today you would earn a total of 541.00 from holding L Abbett Growth or generate 12.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
L Abbett Growth vs. HUMANA INC
Performance |
| Timeline |
| L Abbett Growth |
| HUMANA INC |
L Abbett and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with L Abbett and HUMANA
The main advantage of trading using opposite L Abbett and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if L Abbett 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.| L Abbett vs. Lord Abbett Trust | L Abbett vs. Lord Abbett Trust | L Abbett vs. Lord Abbett Focused | L Abbett vs. Floating Rate Fund |
| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |