Correlation Between HUMANA and Fidelity Advisor
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Fidelity Advisor Balanced, you can compare the effects of market volatilities on HUMANA and Fidelity Advisor 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 Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Fidelity Advisor.
Diversification Opportunities for HUMANA and Fidelity Advisor
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Fidelity is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Fidelity Advisor Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Balanced 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 Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Balanced has no effect on the direction of HUMANA i.e., HUMANA and Fidelity Advisor go up and down completely randomly.
Pair Corralation between HUMANA and Fidelity Advisor
Assuming the 90 days trading horizon HUMANA is expected to generate 4.58 times less return on investment than Fidelity Advisor. In addition to that, HUMANA is 1.08 times more volatile than Fidelity Advisor Balanced. It trades about 0.02 of its total potential returns per unit of risk. Fidelity Advisor Balanced is currently generating about 0.12 per unit of volatility. If you would invest 2,388 in Fidelity Advisor Balanced on August 29, 2024 and sell it today you would earn a total of 499.00 from holding Fidelity Advisor Balanced or generate 20.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.12% |
| Values | Daily Returns |
HUMANA INC vs. Fidelity Advisor Balanced
Performance |
| Timeline |
| HUMANA INC |
| Fidelity Advisor Balanced |
HUMANA and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Fidelity Advisor
The main advantage of trading using opposite HUMANA and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Fidelity Advisor 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 Fidelity Advisor will offset losses from the drop in Fidelity Advisor's long position.The idea behind HUMANA INC and Fidelity Advisor Balanced 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.| Fidelity Advisor vs. American Balanced Fund | Fidelity Advisor vs. American Balanced Fund | Fidelity Advisor vs. HUMANA INC | Fidelity Advisor 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |