Correlation Between Columbia Large and HUMANA
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By analyzing existing cross correlation between Columbia Large Cap and HUMANA INC, you can compare the effects of market volatilities on Columbia 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 Columbia Large with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Large and HUMANA.
Diversification Opportunities for Columbia Large and HUMANA
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Columbia and HUMANA is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Columbia 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 Columbia 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 Columbia 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 Columbia Large i.e., Columbia Large and HUMANA go up and down completely randomly.
Pair Corralation between Columbia Large and HUMANA
Assuming the 90 days horizon Columbia Large is expected to generate 63.92 times less return on investment than HUMANA. But when comparing it to its historical volatility, Columbia Large Cap is 75.16 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 8,074 in HUMANA INC on September 3, 2024 and sell it today you would lose (39.00) from holding HUMANA INC or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.74% |
| Values | Daily Returns |
Columbia Large Cap vs. HUMANA INC
Performance |
| Timeline |
| Columbia Large Cap |
| HUMANA INC |
Columbia Large and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Large and HUMANA
The main advantage of trading using opposite Columbia Large and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia 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.| Columbia Large vs. Highland Longshort Healthcare | Columbia Large vs. Deutsche Health And | Columbia Large vs. Live Oak Health | Columbia Large vs. Eventide Healthcare Life |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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