Correlation Between HUMANA and Baird E
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By analyzing existing cross correlation between HUMANA INC and Baird E Plus, you can compare the effects of market volatilities on HUMANA and Baird E 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 Baird E. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Baird E.
Diversification Opportunities for HUMANA and Baird E
Poor diversification
The 3 months correlation between HUMANA and Baird is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Baird E Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baird E Plus 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 Baird E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baird E Plus has no effect on the direction of HUMANA i.e., HUMANA and Baird E go up and down completely randomly.
Pair Corralation between HUMANA and Baird E
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Baird E. In addition to that, HUMANA is 1.92 times more volatile than Baird E Plus. It trades about -0.07 of its total potential returns per unit of risk. Baird E Plus is currently generating about 0.07 per unit of volatility. If you would invest 1,014 in Baird E Plus on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Baird E Plus or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.96% |
| Values | Daily Returns |
HUMANA INC vs. Baird E Plus
Performance |
| Timeline |
| HUMANA INC |
| Baird E Plus |
HUMANA and Baird E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Baird E
The main advantage of trading using opposite HUMANA and Baird E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Baird E 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 Baird E will offset losses from the drop in Baird E's long position.The idea behind HUMANA INC and Baird E Plus 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.| Baird E vs. Pimco Income Fund | Baird E vs. HUMANA INC | Baird E vs. Aquagold International | Baird E 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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