Correlation Between HUMANA and American Funds
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By analyzing existing cross correlation between HUMANA INC and American Funds Developing, you can compare the effects of market volatilities on HUMANA and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and American Funds.
Diversification Opportunities for HUMANA and American Funds
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and American is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and American Funds Developing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds Developing 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds Developing has no effect on the direction of HUMANA i.e., HUMANA and American Funds go up and down completely randomly.
Pair Corralation between HUMANA and American Funds
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the American Funds. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.24 times less risky than American Funds. The bond trades about -0.09 of its potential returns per unit of risk. The American Funds Developing is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,044 in American Funds Developing on September 3, 2024 and sell it today you would earn a total of 15.00 from holding American Funds Developing or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.88% |
| Values | Daily Returns |
HUMANA INC vs. American Funds Developing
Performance |
| Timeline |
| HUMANA INC |
| American Funds Developing |
HUMANA and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and American Funds
The main advantage of trading using opposite HUMANA and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
| American Funds vs. Aam Select Income | American Funds vs. Fa 529 Aggressive | American Funds vs. Volumetric Fund Volumetric | American Funds vs. Qs Large Cap |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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