Correlation Between HUMANA and Fs Multi-strategy
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By analyzing existing cross correlation between HUMANA INC and Fs Multi Strategy Alt, you can compare the effects of market volatilities on HUMANA and Fs Multi-strategy 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 Multi-strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Fs Multi-strategy.
Diversification Opportunities for HUMANA and Fs Multi-strategy
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and FSMMX is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Fs Multi Strategy Alt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fs Multi Strategy 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 Multi-strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fs Multi Strategy has no effect on the direction of HUMANA i.e., HUMANA and Fs Multi-strategy go up and down completely randomly.
Pair Corralation between HUMANA and Fs Multi-strategy
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Fs Multi-strategy. In addition to that, HUMANA is 5.89 times more volatile than Fs Multi Strategy Alt. It trades about -0.18 of its total potential returns per unit of risk. Fs Multi Strategy Alt is currently generating about 0.28 per unit of volatility. If you would invest 1,114 in Fs Multi Strategy Alt on September 2, 2024 and sell it today you would earn a total of 13.00 from holding Fs Multi Strategy Alt or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Fs Multi Strategy Alt
Performance |
| Timeline |
| HUMANA INC |
| Fs Multi Strategy |
HUMANA and Fs Multi-strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Fs Multi-strategy
The main advantage of trading using opposite HUMANA and Fs Multi-strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Fs Multi-strategy 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 Multi-strategy will offset losses from the drop in Fs Multi-strategy's long position.The idea behind HUMANA INC and Fs Multi Strategy Alt pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Fs Multi-strategy vs. Fs Real Asset | Fs Multi-strategy vs. Fs Multi Strategy Alt | Fs Multi-strategy vs. Fs Real Asset | Fs Multi-strategy vs. Aberdeen Australia Ef |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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