Correlation Between HUMANA and Commonwealth Global
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By analyzing existing cross correlation between HUMANA INC and Commonwealth Global Fund, you can compare the effects of market volatilities on HUMANA and Commonwealth 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 Commonwealth Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Commonwealth Global.
Diversification Opportunities for HUMANA and Commonwealth Global
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and Commonwealth is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Commonwealth Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commonwealth Global 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 Commonwealth Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commonwealth Global has no effect on the direction of HUMANA i.e., HUMANA and Commonwealth Global go up and down completely randomly.
Pair Corralation between HUMANA and Commonwealth Global
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.23 times more return on investment than Commonwealth Global. However, HUMANA INC is 4.38 times less risky than Commonwealth Global. It trades about -0.01 of its potential returns per unit of risk. Commonwealth Global Fund is currently generating about -0.02 per unit of risk. If you would invest 8,209 in HUMANA INC on January 28, 2025 and sell it today you would lose (12.00) from holding HUMANA INC or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Commonwealth Global Fund
Performance |
| Timeline |
| HUMANA INC |
| Commonwealth Global |
HUMANA and Commonwealth Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Commonwealth Global
The main advantage of trading using opposite HUMANA and Commonwealth Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Commonwealth 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 Commonwealth Global will offset losses from the drop in Commonwealth Global's long position.| HUMANA vs. Estee Lauder Companies | HUMANA vs. Mako Mining Corp | HUMANA vs. Church Dwight | HUMANA vs. RBC Bearings Incorporated |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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