Correlation Between HUMANA and Ab Large
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By analyzing existing cross correlation between HUMANA INC and Ab Large Cap, you can compare the effects of market volatilities on HUMANA and Ab Large 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 Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Ab Large.
Diversification Opportunities for HUMANA and Ab Large
Excellent diversification
The 3 months correlation between HUMANA and APGAX is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Ab Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Large 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 Ab Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Large Cap has no effect on the direction of HUMANA i.e., HUMANA and Ab Large go up and down completely randomly.
Pair Corralation between HUMANA and Ab Large
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Ab Large. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.59 times less risky than Ab Large. The bond trades about -0.04 of its potential returns per unit of risk. The Ab Large Cap is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 9,404 in Ab Large Cap on September 1, 2024 and sell it today you would earn a total of 1,005 from holding Ab Large Cap or generate 10.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
HUMANA INC vs. Ab Large Cap
Performance |
| Timeline |
| HUMANA INC |
| Ab Large Cap |
HUMANA and Ab Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Ab Large
The main advantage of trading using opposite HUMANA and Ab Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Ab Large 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 Large will offset losses from the drop in Ab Large's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Ab Large vs. Ab Sustainable Global | Ab Large vs. Ab Relative Value | Ab Large vs. Ab Growth Fund | Ab Large vs. Ab Small Cap |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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