Correlation Between HUMANA and Eaton Vance
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Eaton Vance Income, you can compare the effects of market volatilities on HUMANA and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Eaton Vance.
Diversification Opportunities for HUMANA and Eaton Vance
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Eaton is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Eaton Vance Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Income 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Income has no effect on the direction of HUMANA i.e., HUMANA and Eaton Vance go up and down completely randomly.
Pair Corralation between HUMANA and Eaton Vance
Assuming the 90 days trading horizon HUMANA is expected to generate 2.66 times less return on investment than Eaton Vance. In addition to that, HUMANA is 2.97 times more volatile than Eaton Vance Income. It trades about 0.02 of its total potential returns per unit of risk. Eaton Vance Income is currently generating about 0.2 per unit of volatility. If you would invest 499.00 in Eaton Vance Income on August 29, 2024 and sell it today you would earn a total of 24.00 from holding Eaton Vance Income or generate 4.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.83% |
| Values | Daily Returns |
HUMANA INC vs. Eaton Vance Income
Performance |
| Timeline |
| HUMANA INC |
| Eaton Vance Income |
HUMANA and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Eaton Vance
The main advantage of trading using opposite HUMANA and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.The idea behind HUMANA INC and Eaton Vance Income 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.| Eaton Vance vs. Prudential High Yield | Eaton Vance vs. HUMANA INC | Eaton Vance vs. Aquagold International | Eaton Vance vs. Barloworld Ltd ADR |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |