Correlation Between HUMANA and Janus High-yield
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By analyzing existing cross correlation between HUMANA INC and Janus High Yield Fund, you can compare the effects of market volatilities on HUMANA and Janus High-yield 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 Janus High-yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Janus High-yield.
Diversification Opportunities for HUMANA and Janus High-yield
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Janus is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Janus High Yield Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus High Yield 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 Janus High-yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus High Yield has no effect on the direction of HUMANA i.e., HUMANA and Janus High-yield go up and down completely randomly.
Pair Corralation between HUMANA and Janus High-yield
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Janus High-yield. In addition to that, HUMANA is 2.47 times more volatile than Janus High Yield Fund. It trades about -0.02 of its total potential returns per unit of risk. Janus High Yield Fund is currently generating about 0.17 per unit of volatility. If you would invest 665.00 in Janus High Yield Fund on September 2, 2024 and sell it today you would earn a total of 75.00 from holding Janus High Yield Fund or generate 11.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.58% |
| Values | Daily Returns |
HUMANA INC vs. Janus High Yield Fund
Performance |
| Timeline |
| HUMANA INC |
| Janus High Yield |
HUMANA and Janus High-yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Janus High-yield
The main advantage of trading using opposite HUMANA and Janus High-yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Janus High-yield 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 Janus High-yield will offset losses from the drop in Janus High-yield's long position.The idea behind HUMANA INC and Janus High Yield Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Janus High-yield vs. Janus Forty Fund | Janus High-yield vs. Janus Flexible Bond | Janus High-yield vs. Janus Enterprise Fund | Janus High-yield vs. Janus Overseas Fund |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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