Correlation Between HUMANA and Alpine Dynamic
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By analyzing existing cross correlation between HUMANA INC and Alpine Dynamic Dividend, you can compare the effects of market volatilities on HUMANA and Alpine Dynamic 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 Alpine Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Alpine Dynamic.
Diversification Opportunities for HUMANA and Alpine Dynamic
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and ALPINE is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Alpine Dynamic Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpine Dynamic Dividend 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 Alpine Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpine Dynamic Dividend has no effect on the direction of HUMANA i.e., HUMANA and Alpine Dynamic go up and down completely randomly.
Pair Corralation between HUMANA and Alpine Dynamic
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Alpine Dynamic. In addition to that, HUMANA is 1.01 times more volatile than Alpine Dynamic Dividend. It trades about -0.04 of its total potential returns per unit of risk. Alpine Dynamic Dividend is currently generating about 0.06 per unit of volatility. If you would invest 420.00 in Alpine Dynamic Dividend on September 1, 2024 and sell it today you would earn a total of 21.00 from holding Alpine Dynamic Dividend or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.64% |
| Values | Daily Returns |
HUMANA INC vs. Alpine Dynamic Dividend
Performance |
| Timeline |
| HUMANA INC |
| Alpine Dynamic Dividend |
HUMANA and Alpine Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Alpine Dynamic
The main advantage of trading using opposite HUMANA and Alpine Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Alpine Dynamic 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 Alpine Dynamic will offset losses from the drop in Alpine Dynamic's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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