Correlation Between HUMANA and Capital Group
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By analyzing existing cross correlation between HUMANA INC and Capital Group International, you can compare the effects of market volatilities on HUMANA and Capital Group 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 Capital Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Capital Group.
Diversification Opportunities for HUMANA and Capital Group
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUMANA and Capital is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Capital Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Group Intern 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 Capital Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Group Intern has no effect on the direction of HUMANA i.e., HUMANA and Capital Group go up and down completely randomly.
Pair Corralation between HUMANA and Capital Group
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Capital Group. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 138.29 times less risky than Capital Group. The bond trades about -0.04 of its potential returns per unit of risk. The Capital Group International is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Capital Group International on September 1, 2024 and sell it today you would earn a total of 2,474 from holding Capital Group International or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 89.52% |
| Values | Daily Returns |
HUMANA INC vs. Capital Group International
Performance |
| Timeline |
| HUMANA INC |
| Capital Group Intern |
HUMANA and Capital Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Capital Group
The main advantage of trading using opposite HUMANA and Capital Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Capital Group 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 Capital Group will offset losses from the drop in Capital Group's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Capital Group vs. iShares ESG Aggregate | Capital Group vs. SPDR MSCI Emerging | Capital Group vs. Aquagold International | Capital Group vs. Thrivent High Yield |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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