Correlation Between HUMANA and Baillie Gifford
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By analyzing existing cross correlation between HUMANA INC and Baillie Gifford Eafe, you can compare the effects of market volatilities on HUMANA and Baillie Gifford 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 Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Baillie Gifford.
Diversification Opportunities for HUMANA and Baillie Gifford
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Baillie is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Baillie Gifford Eafe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford Eafe 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 Baillie Gifford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baillie Gifford Eafe has no effect on the direction of HUMANA i.e., HUMANA and Baillie Gifford go up and down completely randomly.
Pair Corralation between HUMANA and Baillie Gifford
Assuming the 90 days trading horizon HUMANA INC is expected to generate 65.04 times more return on investment than Baillie Gifford. However, HUMANA is 65.04 times more volatile than Baillie Gifford Eafe. It trades about 0.07 of its potential returns per unit of risk. Baillie Gifford Eafe is currently generating about 0.03 per unit of risk. If you would invest 7,891 in HUMANA INC on September 12, 2024 and sell it today you would lose (196.00) from holding HUMANA INC or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.01% |
| Values | Daily Returns |
HUMANA INC vs. Baillie Gifford Eafe
Performance |
| Timeline |
| HUMANA INC |
| Baillie Gifford Eafe |
HUMANA and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Baillie Gifford
The main advantage of trading using opposite HUMANA and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Baillie Gifford 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 Baillie Gifford will offset losses from the drop in Baillie Gifford's long position.The idea behind HUMANA INC and Baillie Gifford Eafe 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.| Baillie Gifford vs. Europacific Growth Fund | Baillie Gifford vs. SCOR PK | Baillie Gifford vs. Morningstar Unconstrained Allocation | Baillie Gifford vs. Thrivent High Yield |
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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