Correlation Between Capital World and HUMANA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Capital World Bond and HUMANA INC, you can compare the effects of market volatilities on Capital World 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 Capital World with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital World and HUMANA.
Diversification Opportunities for Capital World and HUMANA
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Capital and HUMANA is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Capital World Bond and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Capital World 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 Capital World Bond 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 Capital World i.e., Capital World and HUMANA go up and down completely randomly.
Pair Corralation between Capital World and HUMANA
Assuming the 90 days horizon Capital World Bond is expected to generate 0.3 times more return on investment than HUMANA. However, Capital World Bond is 3.36 times less risky than HUMANA. It trades about 0.02 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.16 per unit of risk. If you would invest 1,616 in Capital World Bond on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Capital World Bond or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Capital World Bond vs. HUMANA INC
Performance |
| Timeline |
| Capital World Bond |
| HUMANA INC |
Capital World and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital World and HUMANA
The main advantage of trading using opposite Capital World and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital World 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.| Capital World vs. Gmo Resources | Capital World vs. Dreyfus Natural Resources | Capital World vs. Franklin Natural Resources | Capital World vs. Oil Gas Ultrasector |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |