Correlation Between HUMANA and One Choice
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By analyzing existing cross correlation between HUMANA INC and One Choice 2050, you can compare the effects of market volatilities on HUMANA and One Choice 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 One Choice. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and One Choice.
Diversification Opportunities for HUMANA and One Choice
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and One is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and One Choice 2050 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Choice 2050 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 One Choice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Choice 2050 has no effect on the direction of HUMANA i.e., HUMANA and One Choice go up and down completely randomly.
Pair Corralation between HUMANA and One Choice
Assuming the 90 days trading horizon HUMANA is expected to generate 32.05 times less return on investment than One Choice. In addition to that, HUMANA is 1.09 times more volatile than One Choice 2050. It trades about 0.0 of its total potential returns per unit of risk. One Choice 2050 is currently generating about 0.11 per unit of volatility. If you would invest 1,293 in One Choice 2050 on September 12, 2024 and sell it today you would earn a total of 280.00 from holding One Choice 2050 or generate 21.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.58% |
| Values | Daily Returns |
HUMANA INC vs. One Choice 2050
Performance |
| Timeline |
| HUMANA INC |
| One Choice 2050 |
HUMANA and One Choice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and One Choice
The main advantage of trading using opposite HUMANA and One Choice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, One Choice 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 One Choice will offset losses from the drop in One Choice's long position.The idea behind HUMANA INC and One Choice 2050 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.| One Choice vs. Vanguard Target Retirement | One Choice vs. American Funds 2050 | One Choice vs. HUMANA INC | One Choice vs. Barloworld Ltd ADR |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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