Correlation Between Pace Large and HUMANA
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By analyzing existing cross correlation between Pace Large Growth and HUMANA INC, you can compare the effects of market volatilities on Pace 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 Pace Large with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace Large and HUMANA.
Diversification Opportunities for Pace Large and HUMANA
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pace and HUMANA is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Pace Large Growth and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Pace 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 Pace Large Growth 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 Pace Large i.e., Pace Large and HUMANA go up and down completely randomly.
Pair Corralation between Pace Large and HUMANA
Assuming the 90 days horizon Pace Large is expected to generate 53.13 times less return on investment than HUMANA. But when comparing it to its historical volatility, Pace Large Growth is 77.66 times less risky than HUMANA. It trades about 0.11 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 August 28, 2024 and sell it today you would earn a total of 23.00 from holding HUMANA INC or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.91% |
| Values | Daily Returns |
Pace Large Growth vs. HUMANA INC
Performance |
| Timeline |
| Pace Large Growth |
| HUMANA INC |
Pace Large and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pace Large and HUMANA
The main advantage of trading using opposite Pace Large and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pace 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.| Pace Large vs. Gamco Global Telecommunications | Pace Large vs. T Rowe Price | Pace Large vs. Bbh Intermediate Municipal | Pace Large vs. California High Yield Municipal |
| HUMANA vs. Zhihu Inc ADR | HUMANA vs. National CineMedia | HUMANA vs. Comstock Holding Companies | HUMANA vs. PennantPark Investment |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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