Correlation Between HUMANA and Alpine Ultra
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By analyzing existing cross correlation between HUMANA INC and Alpine Ultra Short, you can compare the effects of market volatilities on HUMANA and Alpine Ultra 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 Alpine Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Alpine Ultra.
Diversification Opportunities for HUMANA and Alpine Ultra
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Alpine is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Alpine Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpine Ultra Short 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 Alpine Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpine Ultra Short has no effect on the direction of HUMANA i.e., HUMANA and Alpine Ultra go up and down completely randomly.
Pair Corralation between HUMANA and Alpine Ultra
Assuming the 90 days trading horizon HUMANA INC is expected to generate 17.65 times more return on investment than Alpine Ultra. However, HUMANA is 17.65 times more volatile than Alpine Ultra Short. It trades about 0.25 of its potential returns per unit of risk. Alpine Ultra Short is currently generating about 0.24 per unit of risk. If you would invest 7,944 in HUMANA INC on October 24, 2024 and sell it today you would earn a total of 500.00 from holding HUMANA INC or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
HUMANA INC vs. Alpine Ultra Short
Performance |
| Timeline |
| HUMANA INC |
| Alpine Ultra Short |
HUMANA and Alpine Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Alpine Ultra
The main advantage of trading using opposite HUMANA and Alpine Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Alpine Ultra 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 Alpine Ultra will offset losses from the drop in Alpine Ultra's long position.| HUMANA vs. Daily Journal Corp | HUMANA vs. Pearson PLC ADR | HUMANA vs. Gannett Co | HUMANA vs. John Wiley Sons |
| Alpine Ultra vs. Alpine Ultra Short | Alpine Ultra vs. Alpine Dynamic Dividend | Alpine Ultra vs. Alpine Realty Income | Alpine Ultra vs. Alpine Global Infrastructure |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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