Correlation Between Third Avenue and HUMANA
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By analyzing existing cross correlation between Third Avenue Real and HUMANA INC, you can compare the effects of market volatilities on Third Avenue 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 Third Avenue with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Third Avenue and HUMANA.
Diversification Opportunities for Third Avenue and HUMANA
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Third and HUMANA is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Third Avenue Real and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Third Avenue 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 Third Avenue Real 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 Third Avenue i.e., Third Avenue and HUMANA go up and down completely randomly.
Pair Corralation between Third Avenue and HUMANA
Assuming the 90 days horizon Third Avenue Real is expected to generate 0.76 times more return on investment than HUMANA. However, Third Avenue Real is 1.31 times less risky than HUMANA. It trades about 0.38 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.16 per unit of risk. If you would invest 2,384 in Third Avenue Real on September 1, 2024 and sell it today you would earn a total of 233.00 from holding Third Avenue Real or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Third Avenue Real vs. HUMANA INC
Performance |
| Timeline |
| Third Avenue Real |
| HUMANA INC |
Third Avenue and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Third Avenue and HUMANA
The main advantage of trading using opposite Third Avenue and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Third Avenue 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.| Third Avenue vs. Third Avenue Value | Third Avenue vs. Third Avenue Small Cap | Third Avenue vs. Alpine Realty Income | Third Avenue vs. The Fairholme Fund |
| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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