Correlation Between HUMANA and Fidelity Equity-income
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By analyzing existing cross correlation between HUMANA INC and Fidelity Equity Income Fund, you can compare the effects of market volatilities on HUMANA and Fidelity Equity-income 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 Equity-income. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Fidelity Equity-income.
Diversification Opportunities for HUMANA and Fidelity Equity-income
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Fidelity is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Fidelity Equity Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Equity Income 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 Equity-income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Equity Income has no effect on the direction of HUMANA i.e., HUMANA and Fidelity Equity-income go up and down completely randomly.
Pair Corralation between HUMANA and Fidelity Equity-income
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Fidelity Equity-income. In addition to that, HUMANA is 1.11 times more volatile than Fidelity Equity Income Fund. It trades about -0.16 of its total potential returns per unit of risk. Fidelity Equity Income Fund is currently generating about 0.12 per unit of volatility. If you would invest 7,867 in Fidelity Equity Income Fund on August 29, 2024 and sell it today you would earn a total of 247.00 from holding Fidelity Equity Income Fund or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Fidelity Equity Income Fund
Performance |
| Timeline |
| HUMANA INC |
| Fidelity Equity Income |
HUMANA and Fidelity Equity-income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Fidelity Equity-income
The main advantage of trading using opposite HUMANA and Fidelity Equity-income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Fidelity Equity-income 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 Equity-income will offset losses from the drop in Fidelity Equity-income's long position.The idea behind HUMANA INC and Fidelity Equity Income Fund 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 Equity-income vs. Value Fund Investor | Fidelity Equity-income vs. HUMANA INC | Fidelity Equity-income vs. Aquagold International | Fidelity Equity-income 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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