Correlation Between HUMANA and Aristotle Growth
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By analyzing existing cross correlation between HUMANA INC and Aristotle Growth Equity, you can compare the effects of market volatilities on HUMANA and Aristotle Growth 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 Aristotle Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Aristotle Growth.
Diversification Opportunities for HUMANA and Aristotle Growth
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Aristotle is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Aristotle Growth Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristotle Growth Equity 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 Aristotle Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristotle Growth Equity has no effect on the direction of HUMANA i.e., HUMANA and Aristotle Growth go up and down completely randomly.
Pair Corralation between HUMANA and Aristotle Growth
Assuming the 90 days trading horizon HUMANA INC is expected to generate 71.15 times more return on investment than Aristotle Growth. However, HUMANA is 71.15 times more volatile than Aristotle Growth Equity. It trades about 0.07 of its potential returns per unit of risk. Aristotle Growth Equity is currently generating about 0.1 per unit of risk. If you would invest 8,028 in HUMANA INC on August 30, 2024 and sell it today you would lose (333.00) from holding HUMANA INC or give up 4.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 47.41% |
| Values | Daily Returns |
HUMANA INC vs. Aristotle Growth Equity
Performance |
| Timeline |
| HUMANA INC |
| Aristotle Growth Equity |
HUMANA and Aristotle Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Aristotle Growth
The main advantage of trading using opposite HUMANA and Aristotle Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Aristotle Growth 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 Aristotle Growth will offset losses from the drop in Aristotle Growth's long position.The idea behind HUMANA INC and Aristotle Growth Equity 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.| Aristotle Growth vs. Growth Fund Of | Aristotle Growth vs. HUMANA INC | Aristotle Growth vs. Aquagold International | Aristotle Growth 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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