Correlation Between HUMANA and Guardian Fundamental
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By analyzing existing cross correlation between HUMANA INC and Guardian Fundamental Global, you can compare the effects of market volatilities on HUMANA and Guardian Fundamental 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 Guardian Fundamental. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Guardian Fundamental.
Diversification Opportunities for HUMANA and Guardian Fundamental
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Guardian is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Guardian Fundamental Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Fundamental 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 Guardian Fundamental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Fundamental has no effect on the direction of HUMANA i.e., HUMANA and Guardian Fundamental go up and down completely randomly.
Pair Corralation between HUMANA and Guardian Fundamental
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Guardian Fundamental. In addition to that, HUMANA is 1.82 times more volatile than Guardian Fundamental Global. It trades about -0.22 of its total potential returns per unit of risk. Guardian Fundamental Global is currently generating about 0.12 per unit of volatility. If you would invest 1,389 in Guardian Fundamental Global on August 30, 2024 and sell it today you would earn a total of 22.00 from holding Guardian Fundamental Global or generate 1.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Guardian Fundamental Global
Performance |
| Timeline |
| HUMANA INC |
| Guardian Fundamental |
HUMANA and Guardian Fundamental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Guardian Fundamental
The main advantage of trading using opposite HUMANA and Guardian Fundamental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Guardian Fundamental 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 Guardian Fundamental will offset losses from the drop in Guardian Fundamental's long position.The idea behind HUMANA INC and Guardian Fundamental Global 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.| Guardian Fundamental vs. T Rowe Price | Guardian Fundamental vs. T Rowe Price | Guardian Fundamental vs. HUMANA INC | Guardian Fundamental vs. Aquagold International |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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