Correlation Between HUMANA and Gmo Trust
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By analyzing existing cross correlation between HUMANA INC and Gmo Trust , you can compare the effects of market volatilities on HUMANA and Gmo Trust 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 Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Gmo Trust.
Diversification Opportunities for HUMANA and Gmo Trust
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 Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Trust 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 Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Trust has no effect on the direction of HUMANA i.e., HUMANA and Gmo Trust go up and down completely randomly.
Pair Corralation between HUMANA and Gmo Trust
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Gmo Trust. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.29 times less risky than Gmo Trust. The bond trades about -0.04 of its potential returns per unit of risk. The Gmo Trust is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,368 in Gmo Trust on September 1, 2024 and sell it today you would earn a total of 92.00 from holding Gmo Trust or generate 3.89% 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 Trust
Performance |
| Timeline |
| HUMANA INC |
| Gmo Trust |
HUMANA and Gmo Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Gmo Trust
The main advantage of trading using opposite HUMANA and Gmo Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Gmo Trust 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 Trust will offset losses from the drop in Gmo Trust's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Gmo Trust vs. Gmo E Plus | Gmo Trust vs. Gmo Trust | Gmo Trust vs. Gmo Treasury Fund | Gmo Trust vs. Gmo Trust |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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