Correlation Between HUMANA and Davis Select
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By analyzing existing cross correlation between HUMANA INC and Davis Select International, you can compare the effects of market volatilities on HUMANA and Davis Select 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 Davis Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Davis Select.
Diversification Opportunities for HUMANA and Davis Select
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Davis is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Davis Select International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Davis Select Interna 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 Davis Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Davis Select Interna has no effect on the direction of HUMANA i.e., HUMANA and Davis Select go up and down completely randomly.
Pair Corralation between HUMANA and Davis Select
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Davis Select. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 2.17 times less risky than Davis Select. The bond trades about -0.04 of its potential returns per unit of risk. The Davis Select International is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,079 in Davis Select International on September 1, 2024 and sell it today you would earn a total of 272.00 from holding Davis Select International or generate 13.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
HUMANA INC vs. Davis Select International
Performance |
| Timeline |
| HUMANA INC |
| Davis Select Interna |
HUMANA and Davis Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Davis Select
The main advantage of trading using opposite HUMANA and Davis Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Davis Select 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 Davis Select will offset losses from the drop in Davis Select's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Davis Select vs. Davis Select Worldwide | Davis Select vs. Davis Select Financial | Davis Select vs. First Trust Dorsey |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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