Correlation Between Mainstay Large and HUMANA
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By analyzing existing cross correlation between Mainstay Large Cap and HUMANA INC, you can compare the effects of market volatilities on Mainstay Large 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 Mainstay Large with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Large and HUMANA.
Diversification Opportunities for Mainstay Large and HUMANA
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mainstay and HUMANA is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Large Cap and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Mainstay Large 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 Mainstay Large Cap 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 Mainstay Large i.e., Mainstay Large and HUMANA go up and down completely randomly.
Pair Corralation between Mainstay Large and HUMANA
Assuming the 90 days horizon Mainstay Large is expected to generate 56.35 times less return on investment than HUMANA. But when comparing it to its historical volatility, Mainstay Large Cap is 65.87 times less risky than HUMANA. It trades about 0.08 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,028 in HUMANA INC on August 30, 2024 and sell it today you would lose (333.00) from holding HUMANA INC or give up 4.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.74% |
| Values | Daily Returns |
Mainstay Large Cap vs. HUMANA INC
Performance |
| Timeline |
| Mainstay Large Cap |
| HUMANA INC |
Mainstay Large and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Large and HUMANA
The main advantage of trading using opposite Mainstay Large and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Large 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.| Mainstay Large vs. Growth Fund Of | Mainstay Large vs. HUMANA INC | Mainstay Large vs. Aquagold International | Mainstay Large vs. Barloworld Ltd 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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