Correlation Between HUMANA and Gmo Quality
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By analyzing existing cross correlation between HUMANA INC and Gmo Quality Cyclicals, you can compare the effects of market volatilities on HUMANA and Gmo Quality 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 Quality. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Gmo Quality.
Diversification Opportunities for HUMANA and Gmo Quality
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Gmo is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Gmo Quality Cyclicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Quality Cyclicals 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 Quality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Quality Cyclicals has no effect on the direction of HUMANA i.e., HUMANA and Gmo Quality go up and down completely randomly.
Pair Corralation between HUMANA and Gmo Quality
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Gmo Quality. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.29 times less risky than Gmo Quality. The bond trades about -0.04 of its potential returns per unit of risk. The Gmo Quality Cyclicals is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,372 in Gmo Quality Cyclicals on September 1, 2024 and sell it today you would earn a total of 93.00 from holding Gmo Quality Cyclicals or generate 3.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.64% |
| Values | Daily Returns |
HUMANA INC vs. Gmo Quality Cyclicals
Performance |
| Timeline |
| HUMANA INC |
| Gmo Quality Cyclicals |
HUMANA and Gmo Quality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Gmo Quality
The main advantage of trading using opposite HUMANA and Gmo Quality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Gmo Quality 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 Quality will offset losses from the drop in Gmo Quality's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Gmo Quality vs. Gabelli Global Financial | Gmo Quality vs. Fidelity Advisor Financial | Gmo Quality vs. Mesirow Financial Small | Gmo Quality vs. Vanguard Financials Index |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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