Correlation Between HUMANA and Alger Concentrated
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By analyzing existing cross correlation between HUMANA INC and Alger Concentrated Equity, you can compare the effects of market volatilities on HUMANA and Alger Concentrated 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 Alger Concentrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Alger Concentrated.
Diversification Opportunities for HUMANA and Alger Concentrated
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Alger is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Alger Concentrated Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Concentrated Equity 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 Alger Concentrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Concentrated Equity has no effect on the direction of HUMANA i.e., HUMANA and Alger Concentrated go up and down completely randomly.
Pair Corralation between HUMANA and Alger Concentrated
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Alger Concentrated. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.3 times less risky than Alger Concentrated. The bond trades about -0.25 of its potential returns per unit of risk. The Alger Concentrated Equity is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,162 in Alger Concentrated Equity on August 28, 2024 and sell it today you would earn a total of 124.00 from holding Alger Concentrated Equity or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
HUMANA INC vs. Alger Concentrated Equity
Performance |
| Timeline |
| HUMANA INC |
| Alger Concentrated Equity |
HUMANA and Alger Concentrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Alger Concentrated
The main advantage of trading using opposite HUMANA and Alger Concentrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Alger Concentrated 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 Alger Concentrated will offset losses from the drop in Alger Concentrated's long position.| HUMANA vs. Ultra Clean Holdings | HUMANA vs. Dream Homes Development | HUMANA vs. JBG SMITH Properties | HUMANA vs. Allegheny Technologies Incorporated |
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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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