Correlation Between HUMANA and Columbia Ultra
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By analyzing existing cross correlation between HUMANA INC and Columbia Ultra Short, you can compare the effects of market volatilities on HUMANA and Columbia Ultra 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 Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Columbia Ultra.
Diversification Opportunities for HUMANA and Columbia Ultra
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Columbia is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Columbia Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Ultra Short 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 Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Ultra Short has no effect on the direction of HUMANA i.e., HUMANA and Columbia Ultra go up and down completely randomly.
Pair Corralation between HUMANA and Columbia Ultra
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Columbia Ultra. In addition to that, HUMANA is 7.2 times more volatile than Columbia Ultra Short. It trades about -0.03 of its total potential returns per unit of risk. Columbia Ultra Short is currently generating about 0.24 per unit of volatility. If you would invest 889.00 in Columbia Ultra Short on September 1, 2024 and sell it today you would earn a total of 37.00 from holding Columbia Ultra Short or generate 4.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.87% |
| Values | Daily Returns |
HUMANA INC vs. Columbia Ultra Short
Performance |
| Timeline |
| HUMANA INC |
| Columbia Ultra Short |
HUMANA and Columbia Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Columbia Ultra
The main advantage of trading using opposite HUMANA and Columbia Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Columbia Ultra 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 Ultra will offset losses from the drop in Columbia Ultra's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Columbia Ultra vs. Columbia Porate Income | Columbia Ultra vs. Columbia Treasury Index | Columbia Ultra vs. Multi Manager Directional Alternative | Columbia Ultra vs. Columbia Small Cap |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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