Correlation Between HUMANA and Us Government
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By analyzing existing cross correlation between HUMANA INC and Us Government Plus, you can compare the effects of market volatilities on HUMANA and Us Government 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 Us Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Us Government.
Diversification Opportunities for HUMANA and Us Government
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUMANA and GVPIX is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Us Government Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Government Plus 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 Us Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Government Plus has no effect on the direction of HUMANA i.e., HUMANA and Us Government go up and down completely randomly.
Pair Corralation between HUMANA and Us Government
Assuming the 90 days trading horizon HUMANA INC is expected to generate 65.77 times more return on investment than Us Government. However, HUMANA is 65.77 times more volatile than Us Government Plus. It trades about 0.07 of its potential returns per unit of risk. Us Government Plus is currently generating about -0.02 per unit of risk. If you would invest 7,664 in HUMANA INC on November 27, 2024 and sell it today you would earn a total of 235.00 from holding HUMANA INC or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.33% |
| Values | Daily Returns |
HUMANA INC vs. Us Government Plus
Performance |
| Timeline |
| HUMANA INC |
| Us Government Plus |
HUMANA and Us Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Us Government
The main advantage of trading using opposite HUMANA and Us Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Us Government 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 Us Government will offset losses from the drop in Us Government's long position.| HUMANA vs. Amkor Technology | HUMANA vs. Primo Brands | HUMANA vs. The Coca Cola | HUMANA vs. Brandywine Realty Trust |
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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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