Correlation Between HUMANA and Georgia Tax-free
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By analyzing existing cross correlation between HUMANA INC and Georgia Tax Free Bond, you can compare the effects of market volatilities on HUMANA and Georgia Tax-free 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 Georgia Tax-free. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Georgia Tax-free.
Diversification Opportunities for HUMANA and Georgia Tax-free
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and Georgia is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Georgia Tax Free Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Georgia Tax Free 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 Georgia Tax-free. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Georgia Tax Free has no effect on the direction of HUMANA i.e., HUMANA and Georgia Tax-free go up and down completely randomly.
Pair Corralation between HUMANA and Georgia Tax-free
Assuming the 90 days trading horizon HUMANA INC is expected to generate 347.03 times more return on investment than Georgia Tax-free. However, HUMANA is 347.03 times more volatile than Georgia Tax Free Bond. It trades about 0.08 of its potential returns per unit of risk. Georgia Tax Free Bond 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 Together |
| Strength | Insignificant |
| Accuracy | 97.46% |
| Values | Daily Returns |
HUMANA INC vs. Georgia Tax Free Bond
Performance |
| Timeline |
| HUMANA INC |
| Georgia Tax Free |
HUMANA and Georgia Tax-free Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Georgia Tax-free
The main advantage of trading using opposite HUMANA and Georgia Tax-free positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Georgia Tax-free 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 Georgia Tax-free will offset losses from the drop in Georgia Tax-free's long position.| HUMANA vs. Zhihu Inc ADR | HUMANA vs. National CineMedia | HUMANA vs. Comstock Holding Companies | HUMANA vs. PennantPark Investment |
| Georgia Tax-free vs. New Jersey Tax Free | Georgia Tax-free vs. Maryland Tax Free Bond | Georgia Tax-free vs. New York Tax Free | Georgia Tax-free vs. Virginia Tax Free Bond |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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