Correlation Between HUMANA and Destra Multi-alternativ
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By analyzing existing cross correlation between HUMANA INC and Destra Multi Alternative, you can compare the effects of market volatilities on HUMANA and Destra Multi-alternativ 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 Destra Multi-alternativ. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Destra Multi-alternativ.
Diversification Opportunities for HUMANA and Destra Multi-alternativ
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Destra is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Destra Multi Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Destra Multi Alternative 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 Destra Multi-alternativ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Destra Multi Alternative has no effect on the direction of HUMANA i.e., HUMANA and Destra Multi-alternativ go up and down completely randomly.
Pair Corralation between HUMANA and Destra Multi-alternativ
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Destra Multi-alternativ. In addition to that, HUMANA is 1.6 times more volatile than Destra Multi Alternative. It trades about -0.18 of its total potential returns per unit of risk. Destra Multi Alternative is currently generating about 0.19 per unit of volatility. If you would invest 870.00 in Destra Multi Alternative on September 2, 2024 and sell it today you would earn a total of 25.00 from holding Destra Multi Alternative or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Destra Multi Alternative
Performance |
| Timeline |
| HUMANA INC |
| Destra Multi Alternative |
HUMANA and Destra Multi-alternativ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Destra Multi-alternativ
The main advantage of trading using opposite HUMANA and Destra Multi-alternativ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Destra Multi-alternativ 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 Destra Multi-alternativ will offset losses from the drop in Destra Multi-alternativ's long position.The idea behind HUMANA INC and Destra Multi Alternative 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.| Destra Multi-alternativ vs. MFS Investment Grade | Destra Multi-alternativ vs. Eaton Vance Municipal | Destra Multi-alternativ vs. DTF Tax Free | Destra Multi-alternativ vs. HUMANA INC |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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