Correlation Between HUMANA and Bancroft Fund
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By analyzing existing cross correlation between HUMANA INC and Bancroft Fund Limited, you can compare the effects of market volatilities on HUMANA and Bancroft Fund 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 Bancroft Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Bancroft Fund.
Diversification Opportunities for HUMANA and Bancroft Fund
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Bancroft is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Bancroft Fund Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bancroft Fund Limited 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 Bancroft Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bancroft Fund Limited has no effect on the direction of HUMANA i.e., HUMANA and Bancroft Fund go up and down completely randomly.
Pair Corralation between HUMANA and Bancroft Fund
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Bancroft Fund. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.4 times less risky than Bancroft Fund. The bond trades about -0.02 of its potential returns per unit of risk. The Bancroft Fund Limited is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,400 in Bancroft Fund Limited on August 29, 2024 and sell it today you would earn a total of 447.00 from holding Bancroft Fund Limited or generate 31.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.58% |
| Values | Daily Returns |
HUMANA INC vs. Bancroft Fund Limited
Performance |
| Timeline |
| HUMANA INC |
| Bancroft Fund Limited |
HUMANA and Bancroft Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Bancroft Fund
The main advantage of trading using opposite HUMANA and Bancroft Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Bancroft Fund 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 Bancroft Fund will offset losses from the drop in Bancroft Fund's long position.| HUMANA vs. Zhihu Inc ADR | HUMANA vs. National CineMedia | HUMANA vs. Comstock Holding Companies | HUMANA vs. PennantPark Investment |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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