Correlation Between HUMANA and Federated Total
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By analyzing existing cross correlation between HUMANA INC and Federated Total Return, you can compare the effects of market volatilities on HUMANA and Federated Total 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 Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Federated Total.
Diversification Opportunities for HUMANA and Federated Total
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Federated is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Federated Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Total Return 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 Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Total Return has no effect on the direction of HUMANA i.e., HUMANA and Federated Total go up and down completely randomly.
Pair Corralation between HUMANA and Federated Total
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Federated Total. In addition to that, HUMANA is 2.15 times more volatile than Federated Total Return. It trades about -0.04 of its total potential returns per unit of risk. Federated Total Return is currently generating about 0.1 per unit of volatility. If you would invest 917.00 in Federated Total Return on September 1, 2024 and sell it today you would earn a total of 36.00 from holding Federated Total Return or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.64% |
| Values | Daily Returns |
HUMANA INC vs. Federated Total Return
Performance |
| Timeline |
| HUMANA INC |
| Federated Total Return |
HUMANA and Federated Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Federated Total
The main advantage of trading using opposite HUMANA and Federated Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Federated Total 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 Total will offset losses from the drop in Federated Total's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Federated Total vs. Goldman Sachs Emerging | Federated Total vs. Transamerica Emerging Markets | Federated Total vs. Ab All Market | Federated Total vs. Aqr Long Short Equity |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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