Correlation Between HUMANA and Calamos Evolving
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By analyzing existing cross correlation between HUMANA INC and Calamos Evolving World, you can compare the effects of market volatilities on HUMANA and Calamos Evolving 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 Calamos Evolving. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Calamos Evolving.
Diversification Opportunities for HUMANA and Calamos Evolving
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Calamos is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Calamos Evolving World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Evolving World 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 Calamos Evolving. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Evolving World has no effect on the direction of HUMANA i.e., HUMANA and Calamos Evolving go up and down completely randomly.
Pair Corralation between HUMANA and Calamos Evolving
Assuming the 90 days trading horizon HUMANA INC is expected to generate 81.94 times more return on investment than Calamos Evolving. However, HUMANA is 81.94 times more volatile than Calamos Evolving World. It trades about 0.07 of its potential returns per unit of risk. Calamos Evolving World is currently generating about 0.05 per unit of risk. If you would invest 8,012 in HUMANA INC on September 2, 2024 and sell it today you would lose (317.00) from holding HUMANA INC or give up 3.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.95% |
| Values | Daily Returns |
HUMANA INC vs. Calamos Evolving World
Performance |
| Timeline |
| HUMANA INC |
| Calamos Evolving World |
HUMANA and Calamos Evolving Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Calamos Evolving
The main advantage of trading using opposite HUMANA and Calamos Evolving positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Calamos Evolving 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 Calamos Evolving will offset losses from the drop in Calamos Evolving's long position.The idea behind HUMANA INC and Calamos Evolving World pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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