Correlation Between HUMANA and Catalyst/smh High
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By analyzing existing cross correlation between HUMANA INC and Catalystsmh High Income, you can compare the effects of market volatilities on HUMANA and Catalyst/smh High 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 Catalyst/smh High. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Catalyst/smh High.
Diversification Opportunities for HUMANA and Catalyst/smh High
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Catalyst/smh is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Catalystsmh High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystsmh High Income 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 Catalyst/smh High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystsmh High Income has no effect on the direction of HUMANA i.e., HUMANA and Catalyst/smh High go up and down completely randomly.
Pair Corralation between HUMANA and Catalyst/smh High
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Catalyst/smh High. In addition to that, HUMANA is 5.28 times more volatile than Catalystsmh High Income. It trades about -0.16 of its total potential returns per unit of risk. Catalystsmh High Income is currently generating about 0.35 per unit of volatility. If you would invest 369.00 in Catalystsmh High Income on September 1, 2024 and sell it today you would earn a total of 8.00 from holding Catalystsmh High Income or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Catalystsmh High Income
Performance |
| Timeline |
| HUMANA INC |
| Catalystsmh High Income |
HUMANA and Catalyst/smh High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Catalyst/smh High
The main advantage of trading using opposite HUMANA and Catalyst/smh High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Catalyst/smh High 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 Catalyst/smh High will offset losses from the drop in Catalyst/smh High's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Catalyst/smh High vs. High Yield Bond | Catalyst/smh High vs. Artisan High Income | Catalyst/smh High vs. Pacific Funds High | Catalyst/smh High vs. Victory High Yield |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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