Correlation Between PIMCO Mortgage and Humana
Can any of the company-specific risk be diversified away by investing in both PIMCO Mortgage and Humana at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PIMCO Mortgage and Humana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PIMCO Mortgage Backed Securities and Humana Inc, you can compare the effects of market volatilities on PIMCO Mortgage 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 Mortgage with a short position of Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of PIMCO Mortgage and Humana.
Diversification Opportunities for PIMCO Mortgage and Humana
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between PIMCO and Humana is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding PIMCO Mortgage Backed Securiti and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc and PIMCO Mortgage 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 Mortgage Backed Securities 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 Mortgage i.e., PIMCO Mortgage and Humana go up and down completely randomly.
Pair Corralation between PIMCO Mortgage and Humana
Given the investment horizon of 90 days PIMCO Mortgage is expected to generate 16.11 times less return on investment than Humana. But when comparing it to its historical volatility, PIMCO Mortgage Backed Securities is 8.36 times less risky than Humana. It trades about 0.11 of its potential returns per unit of risk. Humana Inc is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 25,777 in Humana Inc on August 30, 2024 and sell it today you would earn a total of 3,891 from holding Humana Inc or generate 15.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PIMCO Mortgage Backed Securiti vs. Humana Inc
Performance |
| Timeline |
| PIMCO Mortgage Backed |
| Humana Inc |
PIMCO Mortgage and Humana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PIMCO Mortgage and Humana
The main advantage of trading using opposite PIMCO Mortgage and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PIMCO Mortgage 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 Mortgage vs. Valued Advisers Trust | PIMCO Mortgage vs. Columbia Diversified Fixed | PIMCO Mortgage vs. Principal Exchange Traded Funds | PIMCO Mortgage vs. Doubleline Etf Trust |
| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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