Correlation Between HUMANA and Nuveen Mid
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Nuveen Mid Cap, you can compare the effects of market volatilities on HUMANA and Nuveen Mid 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 Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Nuveen Mid.
Diversification Opportunities for HUMANA and Nuveen Mid
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Nuveen is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Nuveen Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Mid Cap 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 Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Mid Cap has no effect on the direction of HUMANA i.e., HUMANA and Nuveen Mid go up and down completely randomly.
Pair Corralation between HUMANA and Nuveen Mid
Assuming the 90 days trading horizon HUMANA INC is expected to generate 83.0 times more return on investment than Nuveen Mid. However, HUMANA is 83.0 times more volatile than Nuveen Mid Cap. It trades about 0.07 of its potential returns per unit of risk. Nuveen Mid Cap is currently generating about 0.05 per unit of risk. If you would invest 8,028 in HUMANA INC on August 30, 2024 and sell it today you would lose (333.00) from holding HUMANA INC or give up 4.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.74% |
| Values | Daily Returns |
HUMANA INC vs. Nuveen Mid Cap
Performance |
| Timeline |
| HUMANA INC |
| Nuveen Mid Cap |
HUMANA and Nuveen Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Nuveen Mid
The main advantage of trading using opposite HUMANA and Nuveen Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Nuveen Mid 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 Mid will offset losses from the drop in Nuveen Mid's long position.The idea behind HUMANA INC and Nuveen Mid Cap 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 Mid vs. Vanguard Mid Cap Value | Nuveen Mid vs. HUMANA INC | Nuveen Mid vs. Aquagold International | Nuveen Mid 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |