Correlation Between HUMANA and Buffalo High
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By analyzing existing cross correlation between HUMANA INC and Buffalo High Yield, you can compare the effects of market volatilities on HUMANA and Buffalo High 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 Buffalo High. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Buffalo High.
Diversification Opportunities for HUMANA and Buffalo High
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Buffalo is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Buffalo High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Buffalo High Yield 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 Buffalo High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Buffalo High Yield has no effect on the direction of HUMANA i.e., HUMANA and Buffalo High go up and down completely randomly.
Pair Corralation between HUMANA and Buffalo High
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Buffalo High. In addition to that, HUMANA is 3.66 times more volatile than Buffalo High Yield. It trades about -0.07 of its total potential returns per unit of risk. Buffalo High Yield is currently generating about 0.14 per unit of volatility. If you would invest 1,075 in Buffalo High Yield on August 29, 2024 and sell it today you would earn a total of 6.00 from holding Buffalo High Yield or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
HUMANA INC vs. Buffalo High Yield
Performance |
| Timeline |
| HUMANA INC |
| Buffalo High Yield |
HUMANA and Buffalo High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Buffalo High
The main advantage of trading using opposite HUMANA and Buffalo High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Buffalo High 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 Buffalo High will offset losses from the drop in Buffalo High's long position.The idea behind HUMANA INC and Buffalo High Yield 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.| Buffalo High vs. Prudential High Yield | Buffalo High vs. HUMANA INC | Buffalo High vs. Aquagold International | Buffalo High vs. Barloworld Ltd ADR |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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