Correlation Between HUMANA and Highland Long/short
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By analyzing existing cross correlation between HUMANA INC and Highland Longshort Healthcare, you can compare the effects of market volatilities on HUMANA and Highland Long/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 Highland Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Highland Long/short.
Diversification Opportunities for HUMANA and Highland Long/short
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and Highland is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Highland Longshort Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Long/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 Highland Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Long/short has no effect on the direction of HUMANA i.e., HUMANA and Highland Long/short go up and down completely randomly.
Pair Corralation between HUMANA and Highland Long/short
Assuming the 90 days trading horizon HUMANA INC is expected to generate 388.25 times more return on investment than Highland Long/short. However, HUMANA is 388.25 times more volatile than Highland Longshort Healthcare. It trades about 0.07 of its potential returns per unit of risk. Highland Longshort Healthcare is currently generating about 0.12 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 | Very Weak |
| Accuracy | 95.33% |
| Values | Daily Returns |
HUMANA INC vs. Highland Longshort Healthcare
Performance |
| Timeline |
| HUMANA INC |
| Highland Long/short |
HUMANA and Highland Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Highland Long/short
The main advantage of trading using opposite HUMANA and Highland Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Highland Long/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 Highland Long/short will offset losses from the drop in Highland Long/short's long position.| HUMANA vs. Amkor Technology | HUMANA vs. Primo Brands | HUMANA vs. The Coca Cola | HUMANA vs. Brandywine Realty 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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