Correlation Between ATT and HUMANA
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By analyzing existing cross correlation between ATT Inc and HUMANA INC 395, you can compare the effects of market volatilities on ATT 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 ATT with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and HUMANA.
Diversification Opportunities for ATT and HUMANA
Pay attention - limited upside
The 3 months correlation between ATT and HUMANA is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and HUMANA INC 395 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC 5 and ATT 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 ATT Inc 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 5 has no effect on the direction of ATT i.e., ATT and HUMANA go up and down completely randomly.
Pair Corralation between ATT and HUMANA
Taking into account the 90-day investment horizon ATT Inc is expected to generate 3.81 times more return on investment than HUMANA. However, ATT is 3.81 times more volatile than HUMANA INC 395. It trades about 0.05 of its potential returns per unit of risk. HUMANA INC 395 is currently generating about 0.0 per unit of risk. If you would invest 1,738 in ATT Inc on September 3, 2024 and sell it today you would earn a total of 578.00 from holding ATT Inc or generate 33.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.26% |
| Values | Daily Returns |
ATT Inc vs. HUMANA INC 395
Performance |
| Timeline |
| ATT Inc |
| HUMANA INC 5 |
ATT and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and HUMANA
The main advantage of trading using opposite ATT and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT 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.| ATT vs. Highway Holdings Limited | ATT vs. QCR Holdings | ATT vs. Partner Communications | ATT vs. Acumen Pharmaceuticals |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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