Correlation Between HUMANA and Bts Managed
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By analyzing existing cross correlation between HUMANA INC and Bts Managed Income, you can compare the effects of market volatilities on HUMANA and Bts Managed 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 Bts Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Bts Managed.
Diversification Opportunities for HUMANA and Bts Managed
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Bts is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Bts Managed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bts Managed Income 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 Bts Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bts Managed Income has no effect on the direction of HUMANA i.e., HUMANA and Bts Managed go up and down completely randomly.
Pair Corralation between HUMANA and Bts Managed
Assuming the 90 days trading horizon HUMANA INC is expected to generate 337.36 times more return on investment than Bts Managed. However, HUMANA is 337.36 times more volatile than Bts Managed Income. It trades about 0.08 of its potential returns per unit of risk. Bts Managed Income is currently generating about 0.09 per unit of risk. If you would invest 7,917 in HUMANA INC on August 31, 2024 and sell it today you would lose (222.00) from holding HUMANA INC or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.32% |
| Values | Daily Returns |
HUMANA INC vs. Bts Managed Income
Performance |
| Timeline |
| HUMANA INC |
| Bts Managed Income |
HUMANA and Bts Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Bts Managed
The main advantage of trading using opposite HUMANA and Bts Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Bts Managed 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 Bts Managed will offset losses from the drop in Bts Managed's long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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