Correlation Between HUMANA and Mainstay Epoch
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Mainstay Epoch Global, you can compare the effects of market volatilities on HUMANA and Mainstay Epoch 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 Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Mainstay Epoch.
Diversification Opportunities for HUMANA and Mainstay Epoch
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Mainstay is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Mainstay Epoch Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Global 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 Mainstay Epoch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Epoch Global has no effect on the direction of HUMANA i.e., HUMANA and Mainstay Epoch go up and down completely randomly.
Pair Corralation between HUMANA and Mainstay Epoch
Assuming the 90 days trading horizon HUMANA INC is expected to generate 108.48 times more return on investment than Mainstay Epoch. However, HUMANA is 108.48 times more volatile than Mainstay Epoch Global. It trades about 0.07 of its potential returns per unit of risk. Mainstay Epoch Global is currently generating about 0.05 per unit of risk. If you would invest 7,891 in HUMANA INC on September 12, 2024 and sell it today you would lose (196.00) from holding HUMANA INC or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.01% |
| Values | Daily Returns |
HUMANA INC vs. Mainstay Epoch Global
Performance |
| Timeline |
| HUMANA INC |
| Mainstay Epoch Global |
HUMANA and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Mainstay Epoch
The main advantage of trading using opposite HUMANA and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Mainstay Epoch 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 Mainstay Epoch will offset losses from the drop in Mainstay Epoch's long position.The idea behind HUMANA INC and Mainstay Epoch Global 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.| Mainstay Epoch vs. Dodge Global Stock | Mainstay Epoch vs. Franklin Mutual Global | Mainstay Epoch vs. T Rowe Price | Mainstay Epoch 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |