Correlation Between HUMANA and Dodge Cox
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By analyzing existing cross correlation between HUMANA INC and Dodge Cox Emerging, you can compare the effects of market volatilities on HUMANA and Dodge Cox 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 Dodge Cox. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Dodge Cox.
Diversification Opportunities for HUMANA and Dodge Cox
Very weak diversification
The 3 months correlation between HUMANA and Dodge is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Dodge Cox Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dodge Cox Emerging 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 Dodge Cox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dodge Cox Emerging has no effect on the direction of HUMANA i.e., HUMANA and Dodge Cox go up and down completely randomly.
Pair Corralation between HUMANA and Dodge Cox
Assuming the 90 days trading horizon HUMANA INC is expected to generate 99.51 times more return on investment than Dodge Cox. However, HUMANA is 99.51 times more volatile than Dodge Cox Emerging. It trades about 0.07 of its potential returns per unit of risk. Dodge Cox Emerging is currently generating about 0.06 per unit of risk. If you would invest 8,122 in HUMANA INC on November 27, 2024 and sell it today you would lose (223.00) from holding HUMANA INC or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.75% |
| Values | Daily Returns |
HUMANA INC vs. Dodge Cox Emerging
Performance |
| Timeline |
| HUMANA INC |
| Dodge Cox Emerging |
HUMANA and Dodge Cox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Dodge Cox
The main advantage of trading using opposite HUMANA and Dodge Cox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Dodge Cox 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 Dodge Cox will offset losses from the drop in Dodge Cox's long position.| HUMANA vs. Amkor Technology | HUMANA vs. Primo Brands | HUMANA vs. The Coca Cola | HUMANA vs. Brandywine Realty Trust |
| Dodge Cox vs. Stone Ridge Diversified | Dodge Cox vs. Diversified Bond Fund | Dodge Cox vs. Massmutual Premier Diversified | Dodge Cox vs. Aqr Diversified Arbitrage |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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