Correlation Between Nuance Mid and HUMANA
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By analyzing existing cross correlation between Nuance Mid Cap and HUMANA INC, you can compare the effects of market volatilities on Nuance Mid 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 Nuance Mid with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuance Mid and HUMANA.
Diversification Opportunities for Nuance Mid and HUMANA
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nuance and HUMANA is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Nuance Mid Cap and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Nuance Mid 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 Nuance Mid 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 Nuance Mid i.e., Nuance Mid and HUMANA go up and down completely randomly.
Pair Corralation between Nuance Mid and HUMANA
Assuming the 90 days horizon Nuance Mid is expected to generate 336.67 times less return on investment than HUMANA. But when comparing it to its historical volatility, Nuance Mid Cap is 97.16 times less risky than HUMANA. It trades about 0.02 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 8,012 in HUMANA INC on September 2, 2024 and sell it today you would lose (317.00) from holding HUMANA INC or give up 3.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.95% |
| Values | Daily Returns |
Nuance Mid Cap vs. HUMANA INC
Performance |
| Timeline |
| Nuance Mid Cap |
| HUMANA INC |
Nuance Mid and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuance Mid and HUMANA
The main advantage of trading using opposite Nuance Mid and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuance Mid 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.| Nuance Mid vs. Loomis Sayles Growth | Nuance Mid vs. Gqg Partners Emerg | Nuance Mid vs. Midcap Fund Institutional | Nuance Mid vs. Brown Advisory Growth |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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