Correlation Between HUMANA and Columbia Dividend
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Columbia Dividend Income, you can compare the effects of market volatilities on HUMANA and Columbia Dividend 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 Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Columbia Dividend.
Diversification Opportunities for HUMANA and Columbia Dividend
-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 Dividend Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Dividend Income 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 Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Dividend Income has no effect on the direction of HUMANA i.e., HUMANA and Columbia Dividend go up and down completely randomly.
Pair Corralation between HUMANA and Columbia Dividend
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Columbia Dividend. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.05 times less risky than Columbia Dividend. The bond trades about -0.07 of its potential returns per unit of risk. The Columbia Dividend Income is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 3,563 in Columbia Dividend Income on August 29, 2024 and sell it today you would earn a total of 102.00 from holding Columbia Dividend Income or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Columbia Dividend Income
Performance |
| Timeline |
| HUMANA INC |
| Columbia Dividend Income |
HUMANA and Columbia Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Columbia Dividend
The main advantage of trading using opposite HUMANA and Columbia Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Columbia Dividend 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 Dividend will offset losses from the drop in Columbia Dividend's long position.The idea behind HUMANA INC and Columbia Dividend Income 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.| Columbia Dividend vs. Value Fund Investor | Columbia Dividend vs. HUMANA INC | Columbia Dividend vs. Aquagold International | Columbia Dividend vs. Barloworld Ltd ADR |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |