Correlation Between HUMANA and Columbia Select
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By analyzing existing cross correlation between HUMANA INC and Columbia Select Large, you can compare the effects of market volatilities on HUMANA and Columbia 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 Columbia Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Columbia Select.
Diversification Opportunities for HUMANA and Columbia Select
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Columbia is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Columbia Select Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Select Large 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 Columbia Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Select Large has no effect on the direction of HUMANA i.e., HUMANA and Columbia Select go up and down completely randomly.
Pair Corralation between HUMANA and Columbia Select
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Columbia Select. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 2.19 times less risky than Columbia Select. The bond trades about -0.04 of its potential returns per unit of risk. The Columbia Select Large is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 812.00 in Columbia Select Large on September 1, 2024 and sell it today you would earn a total of 18.00 from holding Columbia Select Large or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.64% |
| Values | Daily Returns |
HUMANA INC vs. Columbia Select Large
Performance |
| Timeline |
| HUMANA INC |
| Columbia Select Large |
HUMANA and Columbia Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Columbia Select
The main advantage of trading using opposite HUMANA and Columbia Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Columbia 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 Columbia Select will offset losses from the drop in Columbia Select's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Columbia Select vs. Columbia Large Cap | Columbia Select vs. Columbia Ultra Short | Columbia Select vs. Columbia Integrated Large | Columbia Select vs. Columbia Integrated Large |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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