Correlation Between HUMANA and Global X
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By analyzing existing cross correlation between HUMANA INC and Global X Adaptive, you can compare the effects of market volatilities on HUMANA and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Global X.
Diversification Opportunities for HUMANA and Global X
Excellent diversification
The 3 months correlation between HUMANA and Global is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Global X Adaptive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Adaptive 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Adaptive has no effect on the direction of HUMANA i.e., HUMANA and Global X go up and down completely randomly.
Pair Corralation between HUMANA and Global X
Assuming the 90 days trading horizon HUMANA INC is expected to generate 118.15 times more return on investment than Global X. However, HUMANA is 118.15 times more volatile than Global X Adaptive. It trades about 0.08 of its potential returns per unit of risk. Global X Adaptive is currently generating about 0.13 per unit of risk. If you would invest 7,917 in HUMANA INC on September 12, 2024 and sell it today you would lose (222.00) from holding HUMANA INC or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.86% |
| Values | Daily Returns |
HUMANA INC vs. Global X Adaptive
Performance |
| Timeline |
| HUMANA INC |
| Global X Adaptive |
HUMANA and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Global X
The main advantage of trading using opposite HUMANA and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.The idea behind HUMANA INC and Global X Adaptive 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.| Global X vs. SPDR Portfolio Aggregate | Global X vs. WBI Power Factor | Global X vs. Global X MSCI | Global X vs. HUMANA INC |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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