Correlation Between HUMANA and Federated High
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By analyzing existing cross correlation between HUMANA INC and Federated High Income, you can compare the effects of market volatilities on HUMANA and Federated High 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 Federated High. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Federated High.
Diversification Opportunities for HUMANA and Federated High
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Federated is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Federated High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated High 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 Federated High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated High Income has no effect on the direction of HUMANA i.e., HUMANA and Federated High go up and down completely randomly.
Pair Corralation between HUMANA and Federated High
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Federated High. In addition to that, HUMANA is 9.76 times more volatile than Federated High Income. It trades about -0.16 of its total potential returns per unit of risk. Federated High Income is currently generating about 0.27 per unit of volatility. If you would invest 678.00 in Federated High Income on September 1, 2024 and sell it today you would earn a total of 6.00 from holding Federated High Income or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Federated High Income
Performance |
| Timeline |
| HUMANA INC |
| Federated High Income |
HUMANA and Federated High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Federated High
The main advantage of trading using opposite HUMANA and Federated High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Federated High 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 Federated High will offset losses from the drop in Federated High's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Federated High vs. Ms Global Fixed | Federated High vs. T Rowe Price | Federated High vs. Versatile Bond Portfolio | Federated High vs. Ab Global Bond |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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