Correlation Between HUMANA and Nuveen Limited
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By analyzing existing cross correlation between HUMANA INC and Nuveen Limited Term, you can compare the effects of market volatilities on HUMANA and Nuveen Limited 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 Nuveen Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Nuveen Limited.
Diversification Opportunities for HUMANA and Nuveen Limited
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUMANA and Nuveen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Nuveen Limited Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Limited Term 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 Nuveen Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Limited Term has no effect on the direction of HUMANA i.e., HUMANA and Nuveen Limited go up and down completely randomly.
Pair Corralation between HUMANA and Nuveen Limited
Assuming the 90 days trading horizon HUMANA INC is expected to generate 407.42 times more return on investment than Nuveen Limited. However, HUMANA is 407.42 times more volatile than Nuveen Limited Term. It trades about 0.05 of its potential returns per unit of risk. Nuveen Limited Term is currently generating about 0.08 per unit of risk. If you would invest 7,809 in HUMANA INC on August 29, 2024 and sell it today you would earn a total of 226.00 from holding HUMANA INC or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.29% |
| Values | Daily Returns |
HUMANA INC vs. Nuveen Limited Term
Performance |
| Timeline |
| HUMANA INC |
| Nuveen Limited Term |
HUMANA and Nuveen Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Nuveen Limited
The main advantage of trading using opposite HUMANA and Nuveen Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Nuveen Limited 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 Nuveen Limited will offset losses from the drop in Nuveen Limited's long position.The idea behind HUMANA INC and Nuveen Limited Term 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.| Nuveen Limited vs. Vanguard Limited Term Tax Exempt | Nuveen Limited vs. HUMANA INC | Nuveen Limited vs. Aquagold International | Nuveen Limited 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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