Correlation Between Pimco Emerging and HUMANA
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By analyzing existing cross correlation between Pimco Emerging Markets and HUMANA INC, you can compare the effects of market volatilities on Pimco Emerging 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 Emerging with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Emerging and HUMANA.
Diversification Opportunities for Pimco Emerging and HUMANA
0.36 | Correlation Coefficient |
Weak 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 Emerging Markets and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Pimco Emerging 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 Emerging Markets 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 Emerging i.e., Pimco Emerging and HUMANA go up and down completely randomly.
Pair Corralation between Pimco Emerging and HUMANA
Assuming the 90 days horizon Pimco Emerging Markets is expected to generate 0.33 times more return on investment than HUMANA. However, Pimco Emerging Markets is 3.0 times less risky than HUMANA. It trades about -0.15 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.21 per unit of risk. If you would invest 727.00 in Pimco Emerging Markets on September 1, 2024 and sell it today you would lose (9.00) from holding Pimco Emerging Markets or give up 1.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Pimco Emerging Markets vs. HUMANA INC
Performance |
| Timeline |
| Pimco Emerging Markets |
| HUMANA INC |
Pimco Emerging and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Emerging and HUMANA
The main advantage of trading using opposite Pimco Emerging and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Emerging 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 Emerging vs. Pimco Rae Worldwide | Pimco Emerging vs. Pimco Rae Worldwide | Pimco Emerging vs. Pimco Rae Worldwide | Pimco Emerging vs. Pimco Rae Worldwide |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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