Correlation Between HUMANA and Western Asset
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By analyzing existing cross correlation between HUMANA INC and Western Asset High, you can compare the effects of market volatilities on HUMANA and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Western Asset.
Diversification Opportunities for HUMANA and Western Asset
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Western is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Western Asset High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset High 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset High has no effect on the direction of HUMANA i.e., HUMANA and Western Asset go up and down completely randomly.
Pair Corralation between HUMANA and Western Asset
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Western Asset. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.64 times less risky than Western Asset. The bond trades about -0.01 of its potential returns per unit of risk. The Western Asset High is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 436.00 in Western Asset High on September 3, 2024 and sell it today you would earn a total of 9.00 from holding Western Asset High or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.37% |
| Values | Daily Returns |
HUMANA INC vs. Western Asset High
Performance |
| Timeline |
| HUMANA INC |
| Western Asset High |
HUMANA and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Western Asset
The main advantage of trading using opposite HUMANA and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
| Western Asset vs. Western Asset High | Western Asset vs. Western Asset High | Western Asset vs. Blackrock Debt Strategies | Western Asset vs. Western Asset Diversified |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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