Correlation Between HUMANA and Gmo Global
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By analyzing existing cross correlation between HUMANA INC and Gmo Global Equity, you can compare the effects of market volatilities on HUMANA and Gmo Global 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 Gmo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Gmo Global.
Diversification Opportunities for HUMANA and Gmo Global
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Gmo is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Gmo Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Global Equity 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 Gmo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Global Equity has no effect on the direction of HUMANA i.e., HUMANA and Gmo Global go up and down completely randomly.
Pair Corralation between HUMANA and Gmo Global
Assuming the 90 days trading horizon HUMANA INC is expected to generate 125.02 times more return on investment than Gmo Global. However, HUMANA is 125.02 times more volatile than Gmo Global Equity. It trades about 0.08 of its potential returns per unit of risk. Gmo Global Equity is currently generating about 0.08 per unit of risk. If you would invest 7,827 in HUMANA INC on August 28, 2024 and sell it today you would earn a total of 208.00 from holding HUMANA INC or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
HUMANA INC vs. Gmo Global Equity
Performance |
| Timeline |
| HUMANA INC |
| Gmo Global Equity |
HUMANA and Gmo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Gmo Global
The main advantage of trading using opposite HUMANA and Gmo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Gmo Global 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 Gmo Global will offset losses from the drop in Gmo Global's long position.| HUMANA vs. Zhihu Inc ADR | HUMANA vs. National CineMedia | HUMANA vs. Comstock Holding Companies | HUMANA vs. PennantPark Investment |
| Gmo Global vs. Matson Money Fixed | Gmo Global vs. Transamerica Funds | Gmo Global vs. T Rowe Price | Gmo Global vs. Plan Investment |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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