Correlation Between Nuveen High and HUMANA
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By analyzing existing cross correlation between Nuveen High Yield and HUMANA INC, you can compare the effects of market volatilities on Nuveen High 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 Nuveen High with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen High and HUMANA.
Diversification Opportunities for Nuveen High and HUMANA
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuveen and HUMANA is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen High Yield and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Nuveen High 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 Nuveen High Yield 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 Nuveen High i.e., Nuveen High and HUMANA go up and down completely randomly.
Pair Corralation between Nuveen High and HUMANA
Assuming the 90 days horizon Nuveen High Yield is expected to generate 0.32 times more return on investment than HUMANA. However, Nuveen High Yield is 3.16 times less risky than HUMANA. It trades about 0.21 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.16 per unit of risk. If you would invest 1,472 in Nuveen High Yield on September 1, 2024 and sell it today you would earn a total of 30.00 from holding Nuveen High Yield or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Nuveen High Yield vs. HUMANA INC
Performance |
| Timeline |
| Nuveen High Yield |
| HUMANA INC |
Nuveen High and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen High and HUMANA
The main advantage of trading using opposite Nuveen High and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen High 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.| Nuveen High vs. Nuveen High Yield | Nuveen High vs. Oppenheimer Roc High | Nuveen High vs. Nuveen High Yield | Nuveen High vs. Nuveen High Yield |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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