Correlation Between HUMANA and Foundations Dynamic
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By analyzing existing cross correlation between HUMANA INC and Foundations Dynamic Value, you can compare the effects of market volatilities on HUMANA and Foundations Dynamic 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 Foundations Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Foundations Dynamic.
Diversification Opportunities for HUMANA and Foundations Dynamic
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Foundations is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Foundations Dynamic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foundations Dynamic Value 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 Foundations Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foundations Dynamic Value has no effect on the direction of HUMANA i.e., HUMANA and Foundations Dynamic go up and down completely randomly.
Pair Corralation between HUMANA and Foundations Dynamic
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Foundations Dynamic. In addition to that, HUMANA is 1.4 times more volatile than Foundations Dynamic Value. It trades about -0.22 of its total potential returns per unit of risk. Foundations Dynamic Value is currently generating about 0.26 per unit of volatility. If you would invest 1,261 in Foundations Dynamic Value on August 30, 2024 and sell it today you would earn a total of 59.00 from holding Foundations Dynamic Value or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Foundations Dynamic Value
Performance |
| Timeline |
| HUMANA INC |
| Foundations Dynamic Value |
HUMANA and Foundations Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Foundations Dynamic
The main advantage of trading using opposite HUMANA and Foundations Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Foundations Dynamic 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 Foundations Dynamic will offset losses from the drop in Foundations Dynamic's long position.The idea behind HUMANA INC and Foundations Dynamic Value 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.| Foundations Dynamic vs. iShares MSCI USA | Foundations Dynamic vs. ABIVAX Socit Anonyme | Foundations Dynamic vs. HUMANA INC | Foundations Dynamic vs. SCOR PK |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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