Correlation Between HUMANA and American Century
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and American Century One, you can compare the effects of market volatilities on HUMANA and American Century 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 HUMANA with a short position of American Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and American Century.
Diversification Opportunities for HUMANA and American Century
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and American is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and American Century One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Century One and HUMANA 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 HUMANA INC are associated (or correlated) with American Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Century One has no effect on the direction of HUMANA i.e., HUMANA and American Century go up and down completely randomly.
Pair Corralation between HUMANA and American Century
Assuming the 90 days trading horizon HUMANA INC is expected to generate 2.29 times more return on investment than American Century. However, HUMANA is 2.29 times more volatile than American Century One. It trades about 0.27 of its potential returns per unit of risk. American Century One is currently generating about 0.11 per unit of risk. If you would invest 7,890 in HUMANA INC on October 21, 2024 and sell it today you would earn a total of 554.00 from holding HUMANA INC or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
HUMANA INC vs. American Century One
Performance |
| Timeline |
| HUMANA INC |
| American Century One |
HUMANA and American Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and American Century
The main advantage of trading using opposite HUMANA and American Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, American Century 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 American Century will offset losses from the drop in American Century's long position.| HUMANA vs. Vantage Drilling International | HUMANA vs. Sable Offshore Corp | HUMANA vs. Noble plc | HUMANA vs. Drilling Tools International |
| American Century vs. Mid Cap Value | American Century vs. Equity Growth Fund | American Century vs. Income Growth Fund | American Century vs. Diversified Bond Fund |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |