Correlation Between HUMANA and FS KKR
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By analyzing existing cross correlation between HUMANA INC and FS KKR Capital, you can compare the effects of market volatilities on HUMANA and FS KKR 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 FS KKR. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and FS KKR.
Diversification Opportunities for HUMANA and FS KKR
Excellent diversification
The 3 months correlation between HUMANA and FSK is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and FS KKR Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FS KKR Capital 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 FS KKR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FS KKR Capital has no effect on the direction of HUMANA i.e., HUMANA and FS KKR go up and down completely randomly.
Pair Corralation between HUMANA and FS KKR
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the FS KKR. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.15 times less risky than FS KKR. The bond trades about -0.06 of its potential returns per unit of risk. The FS KKR Capital is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 2,035 in FS KKR Capital on August 30, 2024 and sell it today you would earn a total of 178.00 from holding FS KKR Capital or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
HUMANA INC vs. FS KKR Capital
Performance |
| Timeline |
| HUMANA INC |
| FS KKR Capital |
HUMANA and FS KKR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and FS KKR
The main advantage of trading using opposite HUMANA and FS KKR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, FS KKR 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 FS KKR will offset losses from the drop in FS KKR's long position.| HUMANA vs. Brandywine Realty Trust | HUMANA vs. Celsius Holdings | HUMANA vs. Uber Technologies | HUMANA vs. PepsiCo |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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