Correlation Between HUMANA and Ab Municipal
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By analyzing existing cross correlation between HUMANA INC and Ab Municipal Bond, you can compare the effects of market volatilities on HUMANA and Ab Municipal 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 Ab Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Ab Municipal.
Diversification Opportunities for HUMANA and Ab Municipal
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and AUNTX is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Ab Municipal Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Municipal Bond 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 Ab Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Municipal Bond has no effect on the direction of HUMANA i.e., HUMANA and Ab Municipal go up and down completely randomly.
Pair Corralation between HUMANA and Ab Municipal
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Ab Municipal. In addition to that, HUMANA is 3.91 times more volatile than Ab Municipal Bond. It trades about -0.01 of its total potential returns per unit of risk. Ab Municipal Bond is currently generating about 0.11 per unit of volatility. If you would invest 1,040 in Ab Municipal Bond on August 28, 2024 and sell it today you would earn a total of 34.00 from holding Ab Municipal Bond or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.12% |
| Values | Daily Returns |
HUMANA INC vs. Ab Municipal Bond
Performance |
| Timeline |
| HUMANA INC |
| Ab Municipal Bond |
HUMANA and Ab Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Ab Municipal
The main advantage of trading using opposite HUMANA and Ab Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Ab Municipal 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 Ab Municipal will offset losses from the drop in Ab Municipal's long position.| HUMANA vs. Zhihu Inc ADR | HUMANA vs. National CineMedia | HUMANA vs. Comstock Holding Companies | HUMANA vs. PennantPark Investment |
| Ab Municipal vs. Absolute Convertible Arbitrage | Ab Municipal vs. Gabelli Convertible And | Ab Municipal vs. Lord Abbett Vertible | Ab Municipal vs. Allianzgi Vertible Fund |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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