Correlation Between Washington Mutual and HUMANA
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By analyzing existing cross correlation between Washington Mutual Investors and HUMANA INC, you can compare the effects of market volatilities on Washington Mutual 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 Washington Mutual with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Washington Mutual and HUMANA.
Diversification Opportunities for Washington Mutual and HUMANA
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Washington and HUMANA is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Washington Mutual Investors and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Washington Mutual 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 Washington Mutual Investors 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 Washington Mutual i.e., Washington Mutual and HUMANA go up and down completely randomly.
Pair Corralation between Washington Mutual and HUMANA
Assuming the 90 days horizon Washington Mutual Investors is expected to generate 0.71 times more return on investment than HUMANA. However, Washington Mutual Investors is 1.41 times less risky than HUMANA. It trades about 0.04 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.23 per unit of risk. If you would invest 6,463 in Washington Mutual Investors on August 24, 2024 and sell it today you would earn a total of 42.00 from holding Washington Mutual Investors or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Washington Mutual Investors vs. HUMANA INC
Performance |
| Timeline |
| Washington Mutual |
| HUMANA INC |
Washington Mutual and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Washington Mutual and HUMANA
The main advantage of trading using opposite Washington Mutual and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Washington Mutual 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.| Washington Mutual vs. Vanguard Small Cap Index | Washington Mutual vs. Vanguard Mid Cap Index | Washington Mutual vs. ABIVAX Socit Anonyme | Washington Mutual vs. SCOR PK |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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