Correlation Between HUMANA and Dimensional World
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By analyzing existing cross correlation between HUMANA INC and Dimensional World ex, you can compare the effects of market volatilities on HUMANA and Dimensional World 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 World. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Dimensional World.
Diversification Opportunities for HUMANA and Dimensional World
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and Dimensional is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Dimensional World ex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimensional 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 Dimensional World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimensional World has no effect on the direction of HUMANA i.e., HUMANA and Dimensional World go up and down completely randomly.
Pair Corralation between HUMANA and Dimensional World
Assuming the 90 days trading horizon HUMANA INC is expected to generate 98.82 times more return on investment than Dimensional World. However, HUMANA is 98.82 times more volatile than Dimensional World ex. It trades about 0.07 of its potential returns per unit of risk. Dimensional World ex is currently generating about 0.06 per unit of risk. If you would invest 8,081 in HUMANA INC on August 29, 2024 and sell it today you would lose (46.00) from holding HUMANA INC or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.55% |
| Values | Daily Returns |
HUMANA INC vs. Dimensional World ex
Performance |
| Timeline |
| HUMANA INC |
| Dimensional World |
HUMANA and Dimensional World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Dimensional World
The main advantage of trading using opposite HUMANA and Dimensional World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Dimensional World 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 World will offset losses from the drop in Dimensional World's long position.The idea behind HUMANA INC and Dimensional World ex 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.| Dimensional World vs. ABIVAX Socit Anonyme | Dimensional World vs. HUMANA INC | Dimensional World vs. SCOR PK | Dimensional World 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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