Correlation Between HUMANA and Federal National
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By analyzing existing cross correlation between HUMANA INC and Federal National Mortgage, you can compare the effects of market volatilities on HUMANA and Federal National 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 Federal National. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Federal National.
Diversification Opportunities for HUMANA and Federal National
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Federal is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Federal National Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal National Mortgage 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 Federal National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal National Mortgage has no effect on the direction of HUMANA i.e., HUMANA and Federal National go up and down completely randomly.
Pair Corralation between HUMANA and Federal National
Assuming the 90 days trading horizon HUMANA INC is expected to generate 17.84 times more return on investment than Federal National. However, HUMANA is 17.84 times more volatile than Federal National Mortgage. It trades about 0.07 of its potential returns per unit of risk. Federal National Mortgage is currently generating about 0.09 per unit of risk. If you would invest 8,074 in HUMANA INC on September 3, 2024 and sell it today you would lose (39.00) from holding HUMANA INC or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.55% |
| Values | Daily Returns |
HUMANA INC vs. Federal National Mortgage
Performance |
| Timeline |
| HUMANA INC |
| Federal National Mortgage |
HUMANA and Federal National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Federal National
The main advantage of trading using opposite HUMANA and Federal National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Federal National 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 Federal National will offset losses from the drop in Federal National's long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
| Federal National vs. Federal Home Loan | Federal National vs. Federal National Mortgage | Federal National vs. Federal National Mortgage | Federal National vs. Federal National Mortgage |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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