Correlation Between HUMANA and American Funds
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By analyzing existing cross correlation between HUMANA INC and American Funds Growth, 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
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and American is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and American Funds Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds Growth 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 Growth 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. In addition to that, HUMANA is 1.52 times more volatile than American Funds Growth. It trades about -0.21 of its total potential returns per unit of risk. American Funds Growth is currently generating about 0.3 per unit of volatility. If you would invest 2,611 in American Funds Growth on September 1, 2024 and sell it today you would earn a total of 127.00 from holding American Funds Growth or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. American Funds Growth
Performance |
| Timeline |
| HUMANA INC |
| American Funds Growth |
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. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| American Funds vs. American Funds Growth | American Funds vs. American Funds Growth | American Funds vs. HUMANA INC | American Funds vs. Aquagold International |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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