Correlation Between HUMANA and Maingate Mlp
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By analyzing existing cross correlation between HUMANA INC and Maingate Mlp Fund, you can compare the effects of market volatilities on HUMANA and Maingate Mlp 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 Maingate Mlp. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Maingate Mlp.
Diversification Opportunities for HUMANA and Maingate Mlp
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Maingate is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Maingate Mlp Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maingate Mlp 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 Maingate Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maingate Mlp has no effect on the direction of HUMANA i.e., HUMANA and Maingate Mlp go up and down completely randomly.
Pair Corralation between HUMANA and Maingate Mlp
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Maingate Mlp. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.45 times less risky than Maingate Mlp. The bond trades about -0.07 of its potential returns per unit of risk. The Maingate Mlp Fund is currently generating about 0.56 of returns per unit of risk over similar time horizon. If you would invest 901.00 in Maingate Mlp Fund on August 29, 2024 and sell it today you would earn a total of 113.00 from holding Maingate Mlp Fund or generate 12.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
HUMANA INC vs. Maingate Mlp Fund
Performance |
| Timeline |
| HUMANA INC |
| Maingate Mlp |
HUMANA and Maingate Mlp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Maingate Mlp
The main advantage of trading using opposite HUMANA and Maingate Mlp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Maingate Mlp 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 Maingate Mlp will offset losses from the drop in Maingate Mlp's long position.The idea behind HUMANA INC and Maingate Mlp Fund 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.| Maingate Mlp vs. HUMANA INC | Maingate Mlp vs. Aquagold International | Maingate Mlp vs. Barloworld Ltd ADR | Maingate Mlp vs. Morningstar Unconstrained Allocation |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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