Correlation Between HUMANA and Emerald Growth
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By analyzing existing cross correlation between HUMANA INC and Emerald Growth Fund, you can compare the effects of market volatilities on HUMANA and Emerald Growth 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 Emerald Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Emerald Growth.
Diversification Opportunities for HUMANA and Emerald Growth
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Emerald is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Emerald Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerald Growth 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 Emerald Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerald Growth has no effect on the direction of HUMANA i.e., HUMANA and Emerald Growth go up and down completely randomly.
Pair Corralation between HUMANA and Emerald Growth
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Emerald Growth. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.13 times less risky than Emerald Growth. The bond trades about -0.19 of its potential returns per unit of risk. The Emerald Growth Fund is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,923 in Emerald Growth Fund on September 13, 2024 and sell it today you would lose (16.00) from holding Emerald Growth Fund or give up 0.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUMANA INC vs. Emerald Growth Fund
Performance |
| Timeline |
| HUMANA INC |
| Emerald Growth |
HUMANA and Emerald Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Emerald Growth
The main advantage of trading using opposite HUMANA and Emerald Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Emerald Growth 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 Emerald Growth will offset losses from the drop in Emerald Growth's long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
| Emerald Growth vs. Emerald Growth Fund | Emerald Growth vs. Emerald Growth Fund | Emerald Growth vs. Driehaus Micro Cap | Emerald Growth vs. Eventide Gilead Fund |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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