Correlation Between HUMANA and Baron Partners
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By analyzing existing cross correlation between HUMANA INC and Baron Partners Fund, you can compare the effects of market volatilities on HUMANA and Baron Partners 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 Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Baron Partners.
Diversification Opportunities for HUMANA and Baron Partners
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Baron is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Baron Partners Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Partners 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 Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Partners has no effect on the direction of HUMANA i.e., HUMANA and Baron Partners go up and down completely randomly.
Pair Corralation between HUMANA and Baron Partners
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Baron Partners. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 3.42 times less risky than Baron Partners. The bond trades about -0.16 of its potential returns per unit of risk. The Baron Partners Fund is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 16,751 in Baron Partners Fund on August 28, 2024 and sell it today you would earn a total of 2,054 from holding Baron Partners Fund or generate 12.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.35% |
| Values | Daily Returns |
HUMANA INC vs. Baron Partners Fund
Performance |
| Timeline |
| HUMANA INC |
| Baron Partners |
HUMANA and Baron Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Baron Partners
The main advantage of trading using opposite HUMANA and Baron Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Baron Partners 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 Partners will offset losses from the drop in Baron Partners' long position.| HUMANA vs. Zhihu Inc ADR | HUMANA vs. National CineMedia | HUMANA vs. Comstock Holding Companies | HUMANA vs. PennantPark Investment |
| Baron Partners vs. Baron Global Advantage | Baron Partners vs. Baron Focused Growth | Baron Partners vs. Baron Discovery Fund |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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