Correlation Between HUMANA and Baillie Gifford
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By analyzing existing cross correlation between HUMANA INC and Baillie Gifford International, 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
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and Baillie is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Baillie Gifford International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford Inte 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 Inte 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 is expected to generate 8.43 times less return on investment than Baillie Gifford. But when comparing it to its historical volatility, HUMANA INC is 1.51 times less risky than Baillie Gifford. It trades about 0.01 of its potential returns per unit of risk. Baillie Gifford International is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,209 in Baillie Gifford International on September 4, 2024 and sell it today you would earn a total of 168.00 from holding Baillie Gifford International or generate 13.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.56% |
| Values | Daily Returns |
HUMANA INC vs. Baillie Gifford International
Performance |
| Timeline |
| HUMANA INC |
| Baillie Gifford Inte |
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.| HUMANA vs. Usio Inc | HUMANA vs. MACOM Technology Solutions | HUMANA vs. Amkor Technology | HUMANA vs. Analog Devices |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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