Correlation Between HUMANA and Grizzly Short
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By analyzing existing cross correlation between HUMANA INC and Grizzly Short Fund, you can compare the effects of market volatilities on HUMANA and Grizzly Short 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 Grizzly Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Grizzly Short.
Diversification Opportunities for HUMANA and Grizzly Short
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Grizzly is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Grizzly Short Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grizzly Short 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 Grizzly Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grizzly Short has no effect on the direction of HUMANA i.e., HUMANA and Grizzly Short go up and down completely randomly.
Pair Corralation between HUMANA and Grizzly Short
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Grizzly Short. In addition to that, HUMANA is 1.28 times more volatile than Grizzly Short Fund. It trades about -0.16 of its total potential returns per unit of risk. Grizzly Short Fund is currently generating about -0.18 per unit of volatility. If you would invest 580.00 in Grizzly Short Fund on September 13, 2024 and sell it today you would lose (32.00) from holding Grizzly Short Fund or give up 5.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Grizzly Short Fund
Performance |
| Timeline |
| HUMANA INC |
| Grizzly Short |
HUMANA and Grizzly Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Grizzly Short
The main advantage of trading using opposite HUMANA and Grizzly Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Grizzly Short 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 Grizzly Short will offset losses from the drop in Grizzly Short's long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
| Grizzly Short vs. Wasatch Small Cap | Grizzly Short vs. Blackrock Sm Cap | Grizzly Short vs. Sentinel Small Pany | Grizzly Short vs. Jhancock Diversified Macro |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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