Correlation Between Capital Income and HUMANA
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By analyzing existing cross correlation between Capital Income Builder and HUMANA INC, you can compare the effects of market volatilities on Capital Income 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 Income with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Income and HUMANA.
Diversification Opportunities for Capital Income and HUMANA
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Capital and HUMANA is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Capital Income Builder and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Capital Income 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 Income Builder 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 Income i.e., Capital Income and HUMANA go up and down completely randomly.
Pair Corralation between Capital Income and HUMANA
Assuming the 90 days horizon Capital Income Builder is expected to generate 0.8 times more return on investment than HUMANA. However, Capital Income Builder is 1.26 times less risky than HUMANA. It trades about 0.02 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.11 per unit of risk. If you would invest 7,240 in Capital Income Builder on August 28, 2024 and sell it today you would earn a total of 30.00 from holding Capital Income Builder or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.31% |
| Values | Daily Returns |
Capital Income Builder vs. HUMANA INC
Performance |
| Timeline |
| Capital Income Builder |
| HUMANA INC |
Capital Income and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Income and HUMANA
The main advantage of trading using opposite Capital Income and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Income 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 Income vs. Income Fund Of | Capital Income vs. New World Fund | Capital Income vs. American Mutual Fund | Capital Income vs. American Mutual Fund |
| HUMANA vs. Zhihu Inc ADR | HUMANA vs. National CineMedia | HUMANA vs. Comstock Holding Companies | HUMANA vs. PennantPark Investment |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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