Correlation Between HUMANA and The Hartford
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By analyzing existing cross correlation between HUMANA INC and The Hartford Balanced, you can compare the effects of market volatilities on HUMANA and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and The Hartford.
Diversification Opportunities for HUMANA and The Hartford
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and THE is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and The Hartford Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Balanced 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Balanced has no effect on the direction of HUMANA i.e., HUMANA and The Hartford go up and down completely randomly.
Pair Corralation between HUMANA and The Hartford
Assuming the 90 days trading horizon HUMANA INC is expected to generate 176.68 times more return on investment than The Hartford. However, HUMANA is 176.68 times more volatile than The Hartford Balanced. It trades about 0.07 of its potential returns per unit of risk. The Hartford Balanced is currently generating about 0.05 per unit of risk. If you would invest 8,074 in HUMANA INC on September 3, 2024 and sell it today you would lose (39.00) from holding HUMANA INC or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.74% |
| Values | Daily Returns |
HUMANA INC vs. The Hartford Balanced
Performance |
| Timeline |
| HUMANA INC |
| Hartford Balanced |
HUMANA and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and The Hartford
The main advantage of trading using opposite HUMANA and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
| The Hartford vs. The Hartford Balanced | The Hartford vs. Capital Income Builder | The Hartford vs. Calvert Large Cap | The Hartford vs. The Hartford Balanced |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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