Correlation Between HUMANA and American High-income
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By analyzing existing cross correlation between HUMANA INC and American High Income Municipal, you can compare the effects of market volatilities on HUMANA and American High-income 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 High-income. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and American High-income.
Diversification Opportunities for HUMANA and American High-income
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and American is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and American High Income Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American High Income 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 High-income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American High Income has no effect on the direction of HUMANA i.e., HUMANA and American High-income go up and down completely randomly.
Pair Corralation between HUMANA and American High-income
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the American High-income. In addition to that, HUMANA is 4.43 times more volatile than American High Income Municipal. It trades about -0.16 of its total potential returns per unit of risk. American High Income Municipal is currently generating about 0.2 per unit of volatility. If you would invest 1,536 in American High Income Municipal on September 1, 2024 and sell it today you would earn a total of 21.00 from holding American High Income Municipal or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. American High Income Municipal
Performance |
| Timeline |
| HUMANA INC |
| American High Income |
HUMANA and American High-income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and American High-income
The main advantage of trading using opposite HUMANA and American High-income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, American High-income 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 High-income will offset losses from the drop in American High-income's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| American High-income vs. Tax Exempt Bond | American High-income vs. American High Income Municipal | American High-income vs. American High Income | American High-income vs. Bond Fund Of |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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