Correlation Between HUMANA and Harbor Large
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By analyzing existing cross correlation between HUMANA INC and Harbor Large Cap, you can compare the effects of market volatilities on HUMANA and Harbor Large 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 Harbor Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Harbor Large.
Diversification Opportunities for HUMANA and Harbor Large
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Harbor is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Harbor Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Large Cap 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 Harbor Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Large Cap has no effect on the direction of HUMANA i.e., HUMANA and Harbor Large go up and down completely randomly.
Pair Corralation between HUMANA and Harbor Large
Assuming the 90 days trading horizon HUMANA INC is expected to generate 112.59 times more return on investment than Harbor Large. However, HUMANA is 112.59 times more volatile than Harbor Large Cap. It trades about 0.08 of its potential returns per unit of risk. Harbor Large Cap is currently generating about 0.08 per unit of risk. If you would invest 8,144 in HUMANA INC on August 25, 2024 and sell it today you would lose (449.00) from holding HUMANA INC or give up 5.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.94% |
| Values | Daily Returns |
HUMANA INC vs. Harbor Large Cap
Performance |
| Timeline |
| HUMANA INC |
| Harbor Large Cap |
HUMANA and Harbor Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Harbor Large
The main advantage of trading using opposite HUMANA and Harbor Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Harbor Large 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 Harbor Large will offset losses from the drop in Harbor Large's long position.| HUMANA vs. Drilling Tools International | HUMANA vs. Delek Drilling | HUMANA vs. Vera Bradley | HUMANA vs. Duluth Holdings |
| Harbor Large vs. Nuveen Large Cap | Harbor Large vs. Nuveen Large Cap | Harbor Large vs. HUMANA INC | Harbor Large vs. SCOR PK |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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