Correlation Between HUMANA and Ab Global
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By analyzing existing cross correlation between HUMANA INC and Ab Global Bond, you can compare the effects of market volatilities on HUMANA and Ab 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 Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Ab Global.
Diversification Opportunities for HUMANA and Ab Global
Very weak diversification
The 3 months correlation between HUMANA and ANAYX is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Ab Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Bond 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 Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Bond has no effect on the direction of HUMANA i.e., HUMANA and Ab Global go up and down completely randomly.
Pair Corralation between HUMANA and Ab Global
Assuming the 90 days trading horizon HUMANA is expected to generate 2.18 times less return on investment than Ab Global. In addition to that, HUMANA is 2.29 times more volatile than Ab Global Bond. It trades about 0.02 of its total potential returns per unit of risk. Ab Global Bond is currently generating about 0.12 per unit of volatility. If you would invest 667.00 in Ab Global Bond on August 29, 2024 and sell it today you would earn a total of 26.00 from holding Ab Global Bond or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.83% |
| Values | Daily Returns |
HUMANA INC vs. Ab Global Bond
Performance |
| Timeline |
| HUMANA INC |
| Ab Global Bond |
HUMANA and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Ab Global
The main advantage of trading using opposite HUMANA and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Ab 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 Ab Global will offset losses from the drop in Ab Global's long position.The idea behind HUMANA INC and Ab Global Bond 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.| Ab Global vs. Vanguard Total International | Ab Global vs. Dfa Five Year Global | Ab Global vs. HUMANA INC | Ab Global vs. Aquagold International |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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