Correlation Between Aig Government and HUMANA
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By analyzing existing cross correlation between Aig Government Money and HUMANA INC, you can compare the effects of market volatilities on Aig Government 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 Aig Government with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and HUMANA.
Diversification Opportunities for Aig Government and HUMANA
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aig and HUMANA is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Aig Government 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 Aig Government Money 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 Aig Government i.e., Aig Government and HUMANA go up and down completely randomly.
Pair Corralation between Aig Government and HUMANA
Assuming the 90 days horizon Aig Government Money is expected to generate 0.25 times more return on investment than HUMANA. However, Aig Government Money is 4.05 times less risky than HUMANA. It trades about 0.08 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.25 per unit of risk. If you would invest 1,004 in Aig Government Money on August 28, 2024 and sell it today you would earn a total of 4.00 from holding Aig Government Money or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Aig Government Money vs. HUMANA INC
Performance |
| Timeline |
| Aig Government Money |
| HUMANA INC |
Aig Government and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and HUMANA
The main advantage of trading using opposite Aig Government and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government 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.| Aig Government vs. T Rowe Price | Aig Government vs. American Century California | Aig Government vs. Cref Money Market | Aig Government vs. Legg Mason Partners |
| HUMANA vs. Ultra Clean Holdings | HUMANA vs. Dream Homes Development | HUMANA vs. JBG SMITH Properties | HUMANA vs. Allegheny Technologies Incorporated |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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