Correlation Between HUMANA and Baron Discovery
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By analyzing existing cross correlation between HUMANA INC and Baron Discovery Fund, you can compare the effects of market volatilities on HUMANA and Baron Discovery 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 Baron Discovery. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Baron Discovery.
Diversification Opportunities for HUMANA and Baron Discovery
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Baron is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Baron Discovery Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Discovery 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 Baron Discovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Discovery has no effect on the direction of HUMANA i.e., HUMANA and Baron Discovery go up and down completely randomly.
Pair Corralation between HUMANA and Baron Discovery
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Baron Discovery. In addition to that, HUMANA is 1.19 times more volatile than Baron Discovery Fund. It trades about -0.15 of its total potential returns per unit of risk. Baron Discovery Fund is currently generating about 0.1 per unit of volatility. If you would invest 3,364 in Baron Discovery Fund on September 13, 2024 and sell it today you would earn a total of 79.00 from holding Baron Discovery Fund or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUMANA INC vs. Baron Discovery Fund
Performance |
| Timeline |
| HUMANA INC |
| Baron Discovery |
HUMANA and Baron Discovery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Baron Discovery
The main advantage of trading using opposite HUMANA and Baron Discovery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Baron Discovery 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 Baron Discovery will offset losses from the drop in Baron Discovery's long position.| HUMANA vs. Doubledown Interactive Co | HUMANA vs. Golden Matrix Group | HUMANA vs. Skechers USA | HUMANA vs. NetEase |
| Baron Discovery vs. Baron Partners Fund | Baron Discovery vs. Baron Global Advantage | Baron Discovery vs. Baron Opportunity Fund | Baron Discovery vs. Baron Fifth Avenue |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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