Correlation Between HUMANA and Fidelity Small
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By analyzing existing cross correlation between HUMANA INC and Fidelity Small Cap, you can compare the effects of market volatilities on HUMANA and Fidelity Small 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 Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Fidelity Small.
Diversification Opportunities for HUMANA and Fidelity Small
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Fidelity is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Fidelity Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Small 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 Fidelity Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Small Cap has no effect on the direction of HUMANA i.e., HUMANA and Fidelity Small go up and down completely randomly.
Pair Corralation between HUMANA and Fidelity Small
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Fidelity Small. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 2.19 times less risky than Fidelity Small. The bond trades about -0.07 of its potential returns per unit of risk. The Fidelity Small Cap is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 3,398 in Fidelity Small Cap on August 29, 2024 and sell it today you would earn a total of 252.00 from holding Fidelity Small Cap or generate 7.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
HUMANA INC vs. Fidelity Small Cap
Performance |
| Timeline |
| HUMANA INC |
| Fidelity Small Cap |
HUMANA and Fidelity Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Fidelity Small
The main advantage of trading using opposite HUMANA and Fidelity Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Fidelity Small 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 Small will offset losses from the drop in Fidelity Small's long position.The idea behind HUMANA INC and Fidelity Small 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.| Fidelity Small vs. Putnam Equity Income | Fidelity Small vs. Putnam Growth Opportunities | Fidelity Small vs. HUMANA INC | Fidelity Small 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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