Correlation Between HUMANA and Defensive Market
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By analyzing existing cross correlation between HUMANA INC and Defensive Market Strategies, you can compare the effects of market volatilities on HUMANA and Defensive Market 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 Defensive Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Defensive Market.
Diversification Opportunities for HUMANA and Defensive Market
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUMANA and Defensive is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Defensive Market Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Defensive Market Str 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 Defensive Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Defensive Market Str has no effect on the direction of HUMANA i.e., HUMANA and Defensive Market go up and down completely randomly.
Pair Corralation between HUMANA and Defensive Market
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Defensive Market. In addition to that, HUMANA is 2.87 times more volatile than Defensive Market Strategies. It trades about -0.09 of its total potential returns per unit of risk. Defensive Market Strategies is currently generating about -0.06 per unit of volatility. If you would invest 1,194 in Defensive Market Strategies on November 27, 2024 and sell it today you would lose (5.00) from holding Defensive Market Strategies or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Defensive Market Strategies
Performance |
| Timeline |
| HUMANA INC |
| Defensive Market Str |
HUMANA and Defensive Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Defensive Market
The main advantage of trading using opposite HUMANA and Defensive Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Defensive Market 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 Defensive Market will offset losses from the drop in Defensive Market's long position.| HUMANA vs. Amkor Technology | HUMANA vs. Primo Brands | HUMANA vs. The Coca Cola | HUMANA vs. Brandywine Realty Trust |
| Defensive Market vs. Ashmore Emerging Markets | Defensive Market vs. Touchstone Small Cap | Defensive Market vs. Champlain Small | Defensive Market vs. Ab Small Cap |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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