Correlation Between HUMANA and Aberdeen Global
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Aberdeen Global Small, you can compare the effects of market volatilities on HUMANA and Aberdeen Global 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 Aberdeen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Aberdeen Global.
Diversification Opportunities for HUMANA and Aberdeen Global
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUMANA and Aberdeen is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Aberdeen Global Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Global Small 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 Aberdeen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Global Small has no effect on the direction of HUMANA i.e., HUMANA and Aberdeen Global go up and down completely randomly.
Pair Corralation between HUMANA and Aberdeen Global
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Aberdeen Global. In addition to that, HUMANA is 1.06 times more volatile than Aberdeen Global Small. It trades about -0.18 of its total potential returns per unit of risk. Aberdeen Global Small is currently generating about 0.01 per unit of volatility. If you would invest 3,149 in Aberdeen Global Small on September 12, 2024 and sell it today you would earn a total of 5.00 from holding Aberdeen Global Small or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
HUMANA INC vs. Aberdeen Global Small
Performance |
| Timeline |
| HUMANA INC |
| Aberdeen Global Small |
HUMANA and Aberdeen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Aberdeen Global
The main advantage of trading using opposite HUMANA and Aberdeen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Aberdeen Global 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 Aberdeen Global will offset losses from the drop in Aberdeen Global's long position.The idea behind HUMANA INC and Aberdeen Global Small pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Aberdeen Global vs. Volumetric Fund Volumetric | Aberdeen Global vs. T Rowe Price | Aberdeen Global vs. Arrow Managed Futures | Aberdeen Global vs. Red Oak Technology |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |