Correlation Between HUMANA and Alger Responsible
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By analyzing existing cross correlation between HUMANA INC and Alger Responsible Investing, you can compare the effects of market volatilities on HUMANA and Alger Responsible 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 Alger Responsible. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Alger Responsible.
Diversification Opportunities for HUMANA and Alger Responsible
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Alger is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Alger Responsible Investing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Responsible 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 Alger Responsible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Responsible has no effect on the direction of HUMANA i.e., HUMANA and Alger Responsible go up and down completely randomly.
Pair Corralation between HUMANA and Alger Responsible
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Alger Responsible. In addition to that, HUMANA is 1.03 times more volatile than Alger Responsible Investing. It trades about -0.22 of its total potential returns per unit of risk. Alger Responsible Investing is currently generating about 0.1 per unit of volatility. If you would invest 1,856 in Alger Responsible Investing on August 30, 2024 and sell it today you would earn a total of 45.00 from holding Alger Responsible Investing or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Alger Responsible Investing
Performance |
| Timeline |
| HUMANA INC |
| Alger Responsible |
HUMANA and Alger Responsible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Alger Responsible
The main advantage of trading using opposite HUMANA and Alger Responsible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Alger Responsible 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 Alger Responsible will offset losses from the drop in Alger Responsible's long position.The idea behind HUMANA INC and Alger Responsible Investing 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.| Alger Responsible vs. Growth Fund Of | Alger Responsible vs. HUMANA INC | Alger Responsible vs. Aquagold International | Alger Responsible vs. Barloworld Ltd 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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