Correlation Between Pax Esg and HUMANA
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By analyzing existing cross correlation between Pax Esg Beta and HUMANA INC, you can compare the effects of market volatilities on Pax Esg 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 Pax Esg with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pax Esg and HUMANA.
Diversification Opportunities for Pax Esg and HUMANA
Very weak diversification
The 3 months correlation between Pax and HUMANA is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Pax Esg Beta and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Pax Esg 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 Pax Esg Beta 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 Pax Esg i.e., Pax Esg and HUMANA go up and down completely randomly.
Pair Corralation between Pax Esg and HUMANA
Assuming the 90 days horizon Pax Esg is expected to generate 196.73 times less return on investment than HUMANA. But when comparing it to its historical volatility, Pax Esg Beta is 107.56 times less risky than HUMANA. It trades about 0.04 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 8,081 in HUMANA INC on August 29, 2024 and sell it today you would lose (46.00) from holding HUMANA INC or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 93.55% |
| Values | Daily Returns |
Pax Esg Beta vs. HUMANA INC
Performance |
| Timeline |
| Pax Esg Beta |
| HUMANA INC |
Pax Esg and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pax Esg and HUMANA
The main advantage of trading using opposite Pax Esg and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pax Esg 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.| Pax Esg vs. HUMANA INC | Pax Esg vs. Aquagold International | Pax Esg vs. Barloworld Ltd ADR | Pax Esg vs. Morningstar Unconstrained Allocation |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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