Correlation Between HUMANA and Aristotle Funds
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By analyzing existing cross correlation between HUMANA INC and Aristotle Funds Series, you can compare the effects of market volatilities on HUMANA and Aristotle Funds 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 Aristotle Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Aristotle Funds.
Diversification Opportunities for HUMANA and Aristotle Funds
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Aristotle is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Aristotle Funds Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristotle Funds Series 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 Aristotle Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristotle Funds Series has no effect on the direction of HUMANA i.e., HUMANA and Aristotle Funds go up and down completely randomly.
Pair Corralation between HUMANA and Aristotle Funds
Assuming the 90 days trading horizon HUMANA INC is expected to generate 91.94 times more return on investment than Aristotle Funds. However, HUMANA is 91.94 times more volatile than Aristotle Funds Series. It trades about 0.07 of its potential returns per unit of risk. Aristotle Funds Series is currently generating about 0.11 per unit of risk. If you would invest 8,028 in HUMANA INC on August 30, 2024 and sell it today you would lose (333.00) from holding HUMANA INC or give up 4.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 88.15% |
| Values | Daily Returns |
HUMANA INC vs. Aristotle Funds Series
Performance |
| Timeline |
| HUMANA INC |
| Aristotle Funds Series |
HUMANA and Aristotle Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Aristotle Funds
The main advantage of trading using opposite HUMANA and Aristotle Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Aristotle Funds 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 Aristotle Funds will offset losses from the drop in Aristotle Funds' long position.The idea behind HUMANA INC and Aristotle Funds Series 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.| Aristotle Funds vs. Growth Fund Of | Aristotle Funds vs. HUMANA INC | Aristotle Funds vs. Aquagold International | Aristotle Funds 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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