Correlation Between HUMANA and Ab Pennsylvania
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By analyzing existing cross correlation between HUMANA INC and Ab Pennsylvania Portfolio, you can compare the effects of market volatilities on HUMANA and Ab Pennsylvania 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 Pennsylvania. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Ab Pennsylvania.
Diversification Opportunities for HUMANA and Ab Pennsylvania
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and APAAX is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Ab Pennsylvania Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Pennsylvania Portfolio 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 Pennsylvania. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Pennsylvania Portfolio has no effect on the direction of HUMANA i.e., HUMANA and Ab Pennsylvania go up and down completely randomly.
Pair Corralation between HUMANA and Ab Pennsylvania
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Ab Pennsylvania. In addition to that, HUMANA is 2.51 times more volatile than Ab Pennsylvania Portfolio. It trades about -0.07 of its total potential returns per unit of risk. Ab Pennsylvania Portfolio is currently generating about 0.15 per unit of volatility. If you would invest 972.00 in Ab Pennsylvania Portfolio on August 29, 2024 and sell it today you would earn a total of 8.00 from holding Ab Pennsylvania Portfolio or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Ab Pennsylvania Portfolio
Performance |
| Timeline |
| HUMANA INC |
| Ab Pennsylvania Portfolio |
HUMANA and Ab Pennsylvania Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Ab Pennsylvania
The main advantage of trading using opposite HUMANA and Ab Pennsylvania positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Ab Pennsylvania 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 Pennsylvania will offset losses from the drop in Ab Pennsylvania's long position.The idea behind HUMANA INC and Ab Pennsylvania Portfolio 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 Pennsylvania vs. Artisan Emerging Markets | Ab Pennsylvania vs. Sterling Capital Short | Ab Pennsylvania vs. Bbh Intermediate Municipal | Ab Pennsylvania vs. Vanguard Emerging Markets |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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