Correlation Between Nationwide Investor and HUMANA
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By analyzing existing cross correlation between Nationwide Investor Destinations and HUMANA INC, you can compare the effects of market volatilities on Nationwide Investor 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 Nationwide Investor with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide Investor and HUMANA.
Diversification Opportunities for Nationwide Investor and HUMANA
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nationwide and HUMANA is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide Investor Destinatio and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Nationwide Investor 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 Nationwide Investor Destinations 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 Nationwide Investor i.e., Nationwide Investor and HUMANA go up and down completely randomly.
Pair Corralation between Nationwide Investor and HUMANA
Assuming the 90 days horizon Nationwide Investor Destinations is expected to generate 0.48 times more return on investment than HUMANA. However, Nationwide Investor Destinations is 2.09 times less risky than HUMANA. It trades about 0.36 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.18 per unit of risk. If you would invest 1,043 in Nationwide Investor Destinations on September 2, 2024 and sell it today you would earn a total of 45.00 from holding Nationwide Investor Destinations or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Nationwide Investor Destinatio vs. HUMANA INC
Performance |
| Timeline |
| Nationwide Investor |
| HUMANA INC |
Nationwide Investor and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nationwide Investor and HUMANA
The main advantage of trading using opposite Nationwide Investor and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide Investor 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.| Nationwide Investor vs. Ab Bond Inflation | Nationwide Investor vs. American Funds Inflation | Nationwide Investor vs. Ab Bond Inflation | Nationwide Investor vs. Oklahoma College Savings |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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