Correlation Between Federated Hermes and HUMANA
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By analyzing existing cross correlation between Federated Hermes Mdt and HUMANA INC, you can compare the effects of market volatilities on Federated Hermes 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 Federated Hermes with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and HUMANA.
Diversification Opportunities for Federated Hermes and HUMANA
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Federated and HUMANA is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Mdt and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Federated Hermes 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 Federated Hermes Mdt 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 Federated Hermes i.e., Federated Hermes and HUMANA go up and down completely randomly.
Pair Corralation between Federated Hermes and HUMANA
Assuming the 90 days horizon Federated Hermes Mdt is expected to generate 0.39 times more return on investment than HUMANA. However, Federated Hermes Mdt is 2.54 times less risky than HUMANA. It trades about -0.26 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.19 per unit of risk. If you would invest 2,059 in Federated Hermes Mdt on September 13, 2024 and sell it today you would lose (50.00) from holding Federated Hermes Mdt or give up 2.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Hermes Mdt vs. HUMANA INC
Performance |
| Timeline |
| Federated Hermes Mdt |
| HUMANA INC |
Federated Hermes and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and HUMANA
The main advantage of trading using opposite Federated Hermes and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes 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.| Federated Hermes vs. Multisector Bond Sma | Federated Hermes vs. Blrc Sgy Mnp | Federated Hermes vs. Versatile Bond Portfolio | Federated Hermes vs. Alliancebernstein Bond |
| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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