Correlation Between HUMANA and Brown Advisory
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By analyzing existing cross correlation between HUMANA INC and Brown Advisory Funds, you can compare the effects of market volatilities on HUMANA and Brown Advisory 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 Brown Advisory. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Brown Advisory.
Diversification Opportunities for HUMANA and Brown Advisory
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Brown is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Brown Advisory Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brown Advisory Funds 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 Brown Advisory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brown Advisory Funds has no effect on the direction of HUMANA i.e., HUMANA and Brown Advisory go up and down completely randomly.
Pair Corralation between HUMANA and Brown Advisory
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Brown Advisory. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.75 times less risky than Brown Advisory. The bond trades about -0.04 of its potential returns per unit of risk. The Brown Advisory Funds is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 970.00 in Brown Advisory Funds on September 1, 2024 and sell it today you would earn a total of 135.00 from holding Brown Advisory Funds or generate 13.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.64% |
| Values | Daily Returns |
HUMANA INC vs. Brown Advisory Funds
Performance |
| Timeline |
| HUMANA INC |
| Brown Advisory Funds |
HUMANA and Brown Advisory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Brown Advisory
The main advantage of trading using opposite HUMANA and Brown Advisory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Brown Advisory 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 Brown Advisory will offset losses from the drop in Brown Advisory's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Brown Advisory vs. Transamerica Financial Life | Brown Advisory vs. Financials Ultrasector Profund | Brown Advisory vs. Royce Global Financial | Brown Advisory vs. Mesirow Financial Small |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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