Correlation Between SPDR SP and HUMANA
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By analyzing existing cross correlation between SPDR SP Dividend and HUMANA INC, you can compare the effects of market volatilities on SPDR SP 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 SPDR SP with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and HUMANA.
Diversification Opportunities for SPDR SP and HUMANA
Very good diversification
The 3 months correlation between SPDR and HUMANA is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP Dividend and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and SPDR SP 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 SPDR SP Dividend 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 SPDR SP i.e., SPDR SP and HUMANA go up and down completely randomly.
Pair Corralation between SPDR SP and HUMANA
Considering the 90-day investment horizon SPDR SP Dividend is expected to generate 1.14 times more return on investment than HUMANA. However, SPDR SP is 1.14 times more volatile than HUMANA INC. It trades about 0.13 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.01 per unit of risk. If you would invest 11,818 in SPDR SP Dividend on September 3, 2024 and sell it today you would earn a total of 2,582 from holding SPDR SP Dividend or generate 21.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.17% |
| Values | Daily Returns |
SPDR SP Dividend vs. HUMANA INC
Performance |
| Timeline |
| SPDR SP Dividend |
| HUMANA INC |
SPDR SP and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and HUMANA
The main advantage of trading using opposite SPDR SP and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP 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.| SPDR SP vs. iShares Select Dividend | SPDR SP vs. Vanguard Dividend Appreciation | SPDR SP vs. Vanguard High Dividend | SPDR SP vs. ProShares SP 500 |
| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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