Correlation Between HUMANA and Columbia Global
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By analyzing existing cross correlation between HUMANA INC and Columbia Global Technology, you can compare the effects of market volatilities on HUMANA and Columbia Global 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 Columbia Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Columbia Global.
Diversification Opportunities for HUMANA and Columbia Global
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Columbia is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Columbia Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Global Tech 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 Columbia Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Global Tech has no effect on the direction of HUMANA i.e., HUMANA and Columbia Global go up and down completely randomly.
Pair Corralation between HUMANA and Columbia Global
Assuming the 90 days trading horizon HUMANA INC is expected to generate 61.71 times more return on investment than Columbia Global. However, HUMANA is 61.71 times more volatile than Columbia Global Technology. It trades about 0.07 of its potential returns per unit of risk. Columbia Global Technology is currently generating about 0.09 per unit of risk. If you would invest 8,122 in HUMANA INC on November 27, 2024 and sell it today you would lose (223.00) from holding HUMANA INC or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.75% |
| Values | Daily Returns |
HUMANA INC vs. Columbia Global Technology
Performance |
| Timeline |
| HUMANA INC |
| Columbia Global Tech |
HUMANA and Columbia Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Columbia Global
The main advantage of trading using opposite HUMANA and Columbia Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Columbia Global 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 Columbia Global will offset losses from the drop in Columbia Global's long position.| HUMANA vs. Amkor Technology | HUMANA vs. Primo Brands | HUMANA vs. The Coca Cola | HUMANA vs. Brandywine Realty Trust |
| Columbia Global vs. Columbia Global Technology | Columbia Global vs. Columbia Small Cap | Columbia Global vs. William Blair International | Columbia Global vs. Columbia Global Dividend |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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