Correlation Between HUMANA and Growth Fund
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By analyzing existing cross correlation between HUMANA INC and Growth Fund Of, you can compare the effects of market volatilities on HUMANA and Growth Fund 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 Growth Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Growth Fund.
Diversification Opportunities for HUMANA and Growth Fund
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Growth is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Growth Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Fund 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 Growth Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Fund has no effect on the direction of HUMANA i.e., HUMANA and Growth Fund go up and down completely randomly.
Pair Corralation between HUMANA and Growth Fund
Assuming the 90 days trading horizon HUMANA is expected to generate 14.25 times less return on investment than Growth Fund. But when comparing it to its historical volatility, HUMANA INC is 1.5 times less risky than Growth Fund. It trades about 0.02 of its potential returns per unit of risk. Growth Fund Of is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 5,515 in Growth Fund Of on September 1, 2024 and sell it today you would earn a total of 2,541 from holding Growth Fund Of or generate 46.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.77% |
| Values | Daily Returns |
HUMANA INC vs. Growth Fund Of
Performance |
| Timeline |
| HUMANA INC |
| Growth Fund |
HUMANA and Growth Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Growth Fund
The main advantage of trading using opposite HUMANA and Growth Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Growth Fund 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 Growth Fund will offset losses from the drop in Growth Fund's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Growth Fund vs. Europacific Growth Fund | Growth Fund vs. Washington Mutual Investors | Growth Fund vs. Capital World Growth | Growth Fund vs. American Balanced 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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