Correlation Between HUMANA and Fidelity Freedom
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By analyzing existing cross correlation between HUMANA INC and Fidelity Freedom 2040, you can compare the effects of market volatilities on HUMANA and Fidelity Freedom 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 Freedom. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Fidelity Freedom.
Diversification Opportunities for HUMANA and Fidelity Freedom
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Fidelity is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Fidelity Freedom 2040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Freedom 2040 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 Freedom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Freedom 2040 has no effect on the direction of HUMANA i.e., HUMANA and Fidelity Freedom go up and down completely randomly.
Pair Corralation between HUMANA and Fidelity Freedom
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Fidelity Freedom. In addition to that, HUMANA is 2.09 times more volatile than Fidelity Freedom 2040. It trades about -0.21 of its total potential returns per unit of risk. Fidelity Freedom 2040 is currently generating about 0.22 per unit of volatility. If you would invest 1,183 in Fidelity Freedom 2040 on September 1, 2024 and sell it today you would earn a total of 30.00 from holding Fidelity Freedom 2040 or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Fidelity Freedom 2040
Performance |
| Timeline |
| HUMANA INC |
| Fidelity Freedom 2040 |
HUMANA and Fidelity Freedom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Fidelity Freedom
The main advantage of trading using opposite HUMANA and Fidelity Freedom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Fidelity Freedom 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 Freedom will offset losses from the drop in Fidelity Freedom's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Fidelity Freedom vs. Fidelity Freedom 2030 | Fidelity Freedom vs. Fidelity Freedom 2010 | Fidelity Freedom vs. Fidelity Freedom Income | Fidelity Freedom vs. Fidelity Freedom 2020 |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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