Correlation Between HUMANA and Fulcrum Diversified
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By analyzing existing cross correlation between HUMANA INC and Fulcrum Diversified Absolute, you can compare the effects of market volatilities on HUMANA and Fulcrum Diversified 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 Fulcrum Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Fulcrum Diversified.
Diversification Opportunities for HUMANA and Fulcrum Diversified
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and Fulcrum is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Fulcrum Diversified Absolute in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fulcrum Diversified 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 Fulcrum Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fulcrum Diversified has no effect on the direction of HUMANA i.e., HUMANA and Fulcrum Diversified go up and down completely randomly.
Pair Corralation between HUMANA and Fulcrum Diversified
Assuming the 90 days trading horizon HUMANA INC is expected to generate 2.42 times more return on investment than Fulcrum Diversified. However, HUMANA is 2.42 times more volatile than Fulcrum Diversified Absolute. It trades about 0.09 of its potential returns per unit of risk. Fulcrum Diversified Absolute is currently generating about -0.08 per unit of risk. If you would invest 8,174 in HUMANA INC on October 25, 2024 and sell it today you would earn a total of 270.00 from holding HUMANA INC or generate 3.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
HUMANA INC vs. Fulcrum Diversified Absolute
Performance |
| Timeline |
| HUMANA INC |
| Fulcrum Diversified |
HUMANA and Fulcrum Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Fulcrum Diversified
The main advantage of trading using opposite HUMANA and Fulcrum Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Fulcrum Diversified 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 Fulcrum Diversified will offset losses from the drop in Fulcrum Diversified's long position.| HUMANA vs. BOS Better Online | HUMANA vs. ZhongAn Online P | HUMANA vs. Global E Online | HUMANA vs. Kenon Holdings |
| Fulcrum Diversified vs. Catalystmillburn Hedge Strategy | Fulcrum Diversified vs. Catalystmillburn Hedge Strategy | Fulcrum Diversified vs. Catalystmillburn Hedge Strategy | Fulcrum Diversified 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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