Correlation Between HUMANA and Janus Forty
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By analyzing existing cross correlation between HUMANA INC and Janus Forty Fund, you can compare the effects of market volatilities on HUMANA and Janus Forty 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 Forty. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Janus Forty.
Diversification Opportunities for HUMANA and Janus Forty
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Janus is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Janus Forty Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Forty Fund 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 Forty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Forty Fund has no effect on the direction of HUMANA i.e., HUMANA and Janus Forty go up and down completely randomly.
Pair Corralation between HUMANA and Janus Forty
Assuming the 90 days trading horizon HUMANA INC is expected to generate 73.4 times more return on investment than Janus Forty. However, HUMANA is 73.4 times more volatile than Janus Forty Fund. It trades about 0.07 of its potential returns per unit of risk. Janus Forty Fund is currently generating about 0.09 per unit of risk. If you would invest 8,074 in HUMANA INC on September 3, 2024 and sell it today you would lose (39.00) from holding HUMANA INC or give up 0.48% 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 Forty Fund
Performance |
| Timeline |
| HUMANA INC |
| Janus Forty Fund |
HUMANA and Janus Forty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Janus Forty
The main advantage of trading using opposite HUMANA and Janus Forty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Janus Forty 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 Forty will offset losses from the drop in Janus Forty's long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
| Janus Forty vs. Janus Overseas Fund | Janus Forty vs. Thornburg International Value | Janus Forty vs. Janus Forty Fund | Janus Forty vs. Janus Forty 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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