Correlation Between HUMANA and Nuveen Core
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By analyzing existing cross correlation between HUMANA INC and Nuveen Core Equity, you can compare the effects of market volatilities on HUMANA and Nuveen Core 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 Nuveen Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Nuveen Core.
Diversification Opportunities for HUMANA and Nuveen Core
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Nuveen is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Nuveen Core Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Core Equity 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 Nuveen Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Core Equity has no effect on the direction of HUMANA i.e., HUMANA and Nuveen Core go up and down completely randomly.
Pair Corralation between HUMANA and Nuveen Core
Assuming the 90 days trading horizon HUMANA INC is expected to generate 77.83 times more return on investment than Nuveen Core. However, HUMANA is 77.83 times more volatile than Nuveen Core Equity. It trades about 0.07 of its potential returns per unit of risk. Nuveen Core Equity is currently generating about 0.06 per unit of risk. If you would invest 8,012 in HUMANA INC on September 2, 2024 and sell it today you would lose (317.00) from holding HUMANA INC or give up 3.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.95% |
| Values | Daily Returns |
HUMANA INC vs. Nuveen Core Equity
Performance |
| Timeline |
| HUMANA INC |
| Nuveen Core Equity |
HUMANA and Nuveen Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Nuveen Core
The main advantage of trading using opposite HUMANA and Nuveen Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Nuveen Core 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 Nuveen Core will offset losses from the drop in Nuveen Core's long position.The idea behind HUMANA INC and Nuveen Core Equity 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.| Nuveen Core vs. Brandywineglobal Globalome Opportunities | Nuveen Core vs. Western Asset Global | Nuveen Core vs. Pioneer Floating Rate | Nuveen Core vs. Nuveen Real Asset |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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