Correlation Between HUMANA and Dimensional International
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By analyzing existing cross correlation between HUMANA INC and Dimensional International Core, you can compare the effects of market volatilities on HUMANA and Dimensional International 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 Dimensional International. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Dimensional International.
Diversification Opportunities for HUMANA and Dimensional International
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Dimensional is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Dimensional International Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimensional International 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 Dimensional International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimensional International has no effect on the direction of HUMANA i.e., HUMANA and Dimensional International go up and down completely randomly.
Pair Corralation between HUMANA and Dimensional International
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Dimensional International. In addition to that, HUMANA is 1.27 times more volatile than Dimensional International Core. It trades about -0.1 of its total potential returns per unit of risk. Dimensional International Core is currently generating about 0.23 per unit of volatility. If you would invest 3,035 in Dimensional International Core on November 29, 2024 and sell it today you would earn a total of 108.00 from holding Dimensional International Core or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Dimensional International Core
Performance |
| Timeline |
| HUMANA INC |
| Dimensional International |
HUMANA and Dimensional International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Dimensional International
The main advantage of trading using opposite HUMANA and Dimensional International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Dimensional International 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 Dimensional International will offset losses from the drop in Dimensional International's long position.| HUMANA vs. SNDL Inc | HUMANA vs. Compania Cervecerias Unidas | HUMANA vs. Monster Beverage Corp | HUMANA vs. Keurig Dr Pepper |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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