Correlation Between HUMANA and Global X
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By analyzing existing cross correlation between HUMANA INC and Global X Funds, you can compare the effects of market volatilities on HUMANA and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Global X.
Diversification Opportunities for HUMANA and Global X
Very good diversification
The 3 months correlation between HUMANA and Global is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Funds has no effect on the direction of HUMANA i.e., HUMANA and Global X go up and down completely randomly.
Pair Corralation between HUMANA and Global X
Assuming the 90 days trading horizon HUMANA is expected to generate 1.23 times less return on investment than Global X. But when comparing it to its historical volatility, HUMANA INC is 1.8 times less risky than Global X. It trades about 0.02 of its potential returns per unit of risk. Global X Funds is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,597 in Global X Funds on August 29, 2024 and sell it today you would earn a total of 40.00 from holding Global X Funds or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.83% |
| Values | Daily Returns |
HUMANA INC vs. Global X Funds
Performance |
| Timeline |
| HUMANA INC |
| Global X Funds |
HUMANA and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Global X
The main advantage of trading using opposite HUMANA and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.The idea behind HUMANA INC and Global X Funds 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.| Global X vs. ABIVAX Socit Anonyme | Global X vs. HUMANA INC | Global X vs. SCOR PK | Global X vs. Aquagold International |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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