Correlation Between Pimco Commoditiesplus and HUMANA
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By analyzing existing cross correlation between Pimco Moditiesplus Strategy and HUMANA INC, you can compare the effects of market volatilities on Pimco Commoditiesplus 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 Pimco Commoditiesplus with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Commoditiesplus and HUMANA.
Diversification Opportunities for Pimco Commoditiesplus and HUMANA
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pimco and HUMANA is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Moditiesplus Strategy and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Pimco Commoditiesplus 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 Pimco Moditiesplus Strategy 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 Pimco Commoditiesplus i.e., Pimco Commoditiesplus and HUMANA go up and down completely randomly.
Pair Corralation between Pimco Commoditiesplus and HUMANA
Assuming the 90 days horizon Pimco Moditiesplus Strategy is expected to generate 1.35 times more return on investment than HUMANA. However, Pimco Commoditiesplus is 1.35 times more volatile than HUMANA INC. It trades about 0.07 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.07 per unit of risk. If you would invest 621.00 in Pimco Moditiesplus Strategy on August 29, 2024 and sell it today you would earn a total of 8.00 from holding Pimco Moditiesplus Strategy or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Pimco Moditiesplus Strategy vs. HUMANA INC
Performance |
| Timeline |
| Pimco Commoditiesplus |
| HUMANA INC |
Pimco Commoditiesplus and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Commoditiesplus and HUMANA
The main advantage of trading using opposite Pimco Commoditiesplus and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Commoditiesplus 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.| Pimco Commoditiesplus vs. Rational Defensive Growth | Pimco Commoditiesplus vs. Ab Small Cap | Pimco Commoditiesplus vs. Touchstone Small Cap | Pimco Commoditiesplus vs. Qs Small Capitalization |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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