Correlation Between Global Strategist and HUMANA
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By analyzing existing cross correlation between Global Strategist Portfolio and HUMANA INC, you can compare the effects of market volatilities on Global Strategist 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 Global Strategist with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Strategist and HUMANA.
Diversification Opportunities for Global Strategist and HUMANA
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and HUMANA is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Global Strategist Portfolio and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Global Strategist 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 Global Strategist Portfolio 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 Global Strategist i.e., Global Strategist and HUMANA go up and down completely randomly.
Pair Corralation between Global Strategist and HUMANA
Assuming the 90 days horizon Global Strategist Portfolio is expected to generate 0.5 times more return on investment than HUMANA. However, Global Strategist Portfolio is 2.0 times less risky than HUMANA. It trades about 0.09 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.15 per unit of risk. If you would invest 1,826 in Global Strategist Portfolio on September 2, 2024 and sell it today you would earn a total of 41.00 from holding Global Strategist Portfolio or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Global Strategist Portfolio vs. HUMANA INC
Performance |
| Timeline |
| Global Strategist |
| HUMANA INC |
Global Strategist and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Strategist and HUMANA
The main advantage of trading using opposite Global Strategist and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Strategist 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.| Global Strategist vs. Emerging Markets Equity | Global Strategist vs. Global Fixed Income | Global Strategist vs. Global Fixed Income | Global Strategist vs. Global Fixed Income |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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