Correlation Between HUMANA and Falling Us
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By analyzing existing cross correlation between HUMANA INC and Falling Dollar Profund, you can compare the effects of market volatilities on HUMANA and Falling Us 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 Falling Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Falling Us.
Diversification Opportunities for HUMANA and Falling Us
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUMANA and Falling is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Falling Dollar Profund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Falling Dollar Profund 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 Falling Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Falling Dollar Profund has no effect on the direction of HUMANA i.e., HUMANA and Falling Us go up and down completely randomly.
Pair Corralation between HUMANA and Falling Us
Assuming the 90 days trading horizon HUMANA INC is expected to generate 240.62 times more return on investment than Falling Us. However, HUMANA is 240.62 times more volatile than Falling Dollar Profund. It trades about 0.08 of its potential returns per unit of risk. Falling Dollar Profund is currently generating about -0.02 per unit of risk. If you would invest 7,935 in HUMANA INC on August 27, 2024 and sell it today you would earn a total of 100.00 from holding HUMANA INC or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.78% |
| Values | Daily Returns |
HUMANA INC vs. Falling Dollar Profund
Performance |
| Timeline |
| HUMANA INC |
| Falling Dollar Profund |
HUMANA and Falling Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Falling Us
The main advantage of trading using opposite HUMANA and Falling Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Falling Us 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 Falling Us will offset losses from the drop in Falling Us' long position.| HUMANA vs. Ultra Clean Holdings | HUMANA vs. Dream Homes Development | HUMANA vs. JBG SMITH Properties | HUMANA vs. Allegheny Technologies Incorporated |
| Falling Us vs. Short Real Estate | Falling Us vs. Short Real Estate | Falling Us vs. Ultrashort Mid Cap Profund | Falling Us vs. Ultrashort Mid Cap Profund |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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