Correlation Between HUMANA and Fidelity Advisor
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By analyzing existing cross correlation between HUMANA INC and Fidelity Advisor Energy, 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
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Fidelity is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Fidelity Advisor Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Energy 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 Energy 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 INC is expected to under-perform the Fidelity Advisor. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.5 times less risky than Fidelity Advisor. The bond trades about -0.05 of its potential returns per unit of risk. The Fidelity Advisor Energy is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 4,510 in Fidelity Advisor Energy on September 3, 2024 and sell it today you would earn a total of 291.00 from holding Fidelity Advisor Energy or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
HUMANA INC vs. Fidelity Advisor Energy
Performance |
| Timeline |
| HUMANA INC |
| Fidelity Advisor Energy |
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.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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