Correlation Between HUMANA and Aqr Risk
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By analyzing existing cross correlation between HUMANA INC and Aqr Risk Parity, you can compare the effects of market volatilities on HUMANA and Aqr Risk 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 Aqr Risk. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Aqr Risk.
Diversification Opportunities for HUMANA and Aqr Risk
Good diversification
The 3 months correlation between HUMANA and Aqr is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Aqr Risk Parity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Risk Parity 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 Aqr Risk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Risk Parity has no effect on the direction of HUMANA i.e., HUMANA and Aqr Risk go up and down completely randomly.
Pair Corralation between HUMANA and Aqr Risk
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Aqr Risk. In addition to that, HUMANA is 2.02 times more volatile than Aqr Risk Parity. It trades about -0.25 of its total potential returns per unit of risk. Aqr Risk Parity is currently generating about 0.24 per unit of volatility. If you would invest 1,050 in Aqr Risk Parity on August 28, 2024 and sell it today you would earn a total of 27.00 from holding Aqr Risk Parity or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Aqr Risk Parity
Performance |
| Timeline |
| HUMANA INC |
| Aqr Risk Parity |
HUMANA and Aqr Risk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Aqr Risk
The main advantage of trading using opposite HUMANA and Aqr Risk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Aqr Risk 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 Aqr Risk will offset losses from the drop in Aqr Risk's long position.| HUMANA vs. Ultra Clean Holdings | HUMANA vs. Dream Homes Development | HUMANA vs. JBG SMITH Properties | HUMANA vs. Allegheny Technologies Incorporated |
| Aqr Risk vs. Aqr Large Cap | Aqr Risk vs. Aqr Large Cap | Aqr Risk vs. Aqr International Defensive | Aqr Risk vs. Aqr International Defensive |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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