Correlation Between HUMANA and Absolute Strategies
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Absolute Strategies Fund, you can compare the effects of market volatilities on HUMANA and Absolute Strategies 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 Absolute Strategies. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Absolute Strategies.
Diversification Opportunities for HUMANA and Absolute Strategies
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUMANA and Absolute is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Absolute Strategies Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absolute Strategies 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 Absolute Strategies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absolute Strategies has no effect on the direction of HUMANA i.e., HUMANA and Absolute Strategies go up and down completely randomly.
Pair Corralation between HUMANA and Absolute Strategies
Assuming the 90 days trading horizon HUMANA INC is expected to generate 1.52 times more return on investment than Absolute Strategies. However, HUMANA is 1.52 times more volatile than Absolute Strategies Fund. It trades about -0.04 of its potential returns per unit of risk. Absolute Strategies Fund is currently generating about -0.09 per unit of risk. If you would invest 7,957 in HUMANA INC on August 31, 2024 and sell it today you would lose (262.00) from holding HUMANA INC or give up 3.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 87.1% |
| Values | Daily Returns |
HUMANA INC vs. Absolute Strategies Fund
Performance |
| Timeline |
| HUMANA INC |
| Absolute Strategies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
HUMANA and Absolute Strategies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Absolute Strategies
The main advantage of trading using opposite HUMANA and Absolute Strategies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Absolute Strategies 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 Absolute Strategies will offset losses from the drop in Absolute Strategies' long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
| Absolute Strategies vs. Mfs International Diversification | Absolute Strategies vs. HUMANA INC | Absolute Strategies vs. Aquagold International | Absolute Strategies 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |