Correlation Between HUMANA and Alger Small
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Alger Small Cap, you can compare the effects of market volatilities on HUMANA and Alger Small 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 Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Alger Small.
Diversification Opportunities for HUMANA and Alger Small
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Alger is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Alger Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Small Cap 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 Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Small Cap has no effect on the direction of HUMANA i.e., HUMANA and Alger Small go up and down completely randomly.
Pair Corralation between HUMANA and Alger Small
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Alger Small. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.13 times less risky than Alger Small. The bond trades about -0.16 of its potential returns per unit of risk. The Alger Small Cap is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 1,574 in Alger Small Cap on September 1, 2024 and sell it today you would earn a total of 232.00 from holding Alger Small Cap or generate 14.74% 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 Small Cap
Performance |
| Timeline |
| HUMANA INC |
| Alger Small Cap |
HUMANA and Alger Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Alger Small
The main advantage of trading using opposite HUMANA and Alger Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Alger Small 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 Small will offset losses from the drop in Alger Small's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Alger Small vs. Pace High Yield | Alger Small vs. Needham Aggressive Growth | Alger Small vs. Ab High Income | Alger Small vs. T Rowe Price |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |