Correlation Between HUMANA and Eagle Financial
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By analyzing existing cross correlation between HUMANA INC and Eagle Financial Services, you can compare the effects of market volatilities on HUMANA and Eagle Financial 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 Eagle Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Eagle Financial.
Diversification Opportunities for HUMANA and Eagle Financial
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Eagle is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Eagle Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Financial Services 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 Eagle Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Financial Services has no effect on the direction of HUMANA i.e., HUMANA and Eagle Financial go up and down completely randomly.
Pair Corralation between HUMANA and Eagle Financial
Assuming the 90 days trading horizon HUMANA INC is expected to generate 27.65 times more return on investment than Eagle Financial. However, HUMANA is 27.65 times more volatile than Eagle Financial Services. It trades about 0.07 of its potential returns per unit of risk. Eagle Financial Services is currently generating about 0.02 per unit of risk. If you would invest 8,120 in HUMANA INC on September 3, 2024 and sell it today you would lose (85.00) from holding HUMANA INC or give up 1.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.91% |
| Values | Daily Returns |
HUMANA INC vs. Eagle Financial Services
Performance |
| Timeline |
| HUMANA INC |
| Eagle Financial Services |
HUMANA and Eagle Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Eagle Financial
The main advantage of trading using opposite HUMANA and Eagle Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Eagle Financial 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 Eagle Financial will offset losses from the drop in Eagle Financial's long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
| Eagle Financial vs. Western Asset Global | Eagle Financial vs. Invesco Trust For | Eagle Financial vs. Logan Ridge Finance | Eagle Financial vs. Invesco Advantage MIT |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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