Correlation Between HUMANA and Janus Balanced
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By analyzing existing cross correlation between HUMANA INC and Janus Balanced Fund, you can compare the effects of market volatilities on HUMANA and Janus Balanced 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 Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Janus Balanced.
Diversification Opportunities for HUMANA and Janus Balanced
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Janus is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Janus Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Balanced 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 Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Balanced has no effect on the direction of HUMANA i.e., HUMANA and Janus Balanced go up and down completely randomly.
Pair Corralation between HUMANA and Janus Balanced
Assuming the 90 days trading horizon HUMANA INC is expected to generate 149.37 times more return on investment than Janus Balanced. However, HUMANA is 149.37 times more volatile than Janus Balanced Fund. It trades about 0.07 of its potential returns per unit of risk. Janus Balanced Fund is currently generating about 0.11 per unit of risk. If you would invest 8,028 in HUMANA INC on August 30, 2024 and sell it today you would lose (333.00) from holding HUMANA INC or give up 4.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.74% |
| Values | Daily Returns |
HUMANA INC vs. Janus Balanced Fund
Performance |
| Timeline |
| HUMANA INC |
| Janus Balanced |
HUMANA and Janus Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Janus Balanced
The main advantage of trading using opposite HUMANA and Janus Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Janus Balanced 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 Balanced will offset losses from the drop in Janus Balanced's long position.The idea behind HUMANA INC and Janus Balanced 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 Balanced vs. American Balanced Fund | Janus Balanced vs. American Balanced Fund | Janus Balanced vs. HUMANA INC | Janus Balanced vs. Aquagold International |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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