Correlation Between HUMANA and MFS High
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By analyzing existing cross correlation between HUMANA INC and MFS High Income, you can compare the effects of market volatilities on HUMANA and MFS High 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 MFS High. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and MFS High.
Diversification Opportunities for HUMANA and MFS High
Average diversification
The 3 months correlation between HUMANA and MFS is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and MFS High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS High 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 MFS High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS High Income has no effect on the direction of HUMANA i.e., HUMANA and MFS High go up and down completely randomly.
Pair Corralation between HUMANA and MFS High
Assuming the 90 days trading horizon HUMANA is expected to generate 3.02 times less return on investment than MFS High. But when comparing it to its historical volatility, HUMANA INC is 1.45 times less risky than MFS High. It trades about 0.06 of its potential returns per unit of risk. MFS High Income is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 289.00 in MFS High Income on August 25, 2024 and sell it today you would earn a total of 89.00 from holding MFS High Income or generate 30.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.05% |
| Values | Daily Returns |
HUMANA INC vs. MFS High Income
Performance |
| Timeline |
| HUMANA INC |
| MFS High Income |
HUMANA and MFS High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and MFS High
The main advantage of trading using opposite HUMANA and MFS High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, MFS High 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 MFS High will offset losses from the drop in MFS High's long position.| HUMANA vs. Deluxe | HUMANA vs. Vita Coco | HUMANA vs. Willamette Valley Vineyards | HUMANA vs. Global E Online |
| MFS High vs. PowerUp Acquisition Corp | MFS High vs. Aurora Innovation | MFS High vs. HUMANA INC | MFS High vs. Aquagold International |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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