Correlation Between HUMANA and Perkins Mid
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By analyzing existing cross correlation between HUMANA INC and Perkins Mid Cap, you can compare the effects of market volatilities on HUMANA and Perkins Mid 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 Perkins Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Perkins Mid.
Diversification Opportunities for HUMANA and Perkins Mid
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Perkins is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Perkins Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perkins Mid 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 Perkins Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perkins Mid Cap has no effect on the direction of HUMANA i.e., HUMANA and Perkins Mid go up and down completely randomly.
Pair Corralation between HUMANA and Perkins Mid
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Perkins Mid. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.53 times less risky than Perkins Mid. The bond trades about -0.07 of its potential returns per unit of risk. The Perkins Mid Cap is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,738 in Perkins Mid Cap on August 29, 2024 and sell it today you would earn a total of 80.00 from holding Perkins Mid Cap or generate 4.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
HUMANA INC vs. Perkins Mid Cap
Performance |
| Timeline |
| HUMANA INC |
| Perkins Mid Cap |
HUMANA and Perkins Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Perkins Mid
The main advantage of trading using opposite HUMANA and Perkins Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Perkins Mid 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 Perkins Mid will offset losses from the drop in Perkins Mid's long position.The idea behind HUMANA INC and Perkins Mid Cap 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.| Perkins Mid vs. Vanguard Mid Cap Value | Perkins Mid vs. HUMANA INC | Perkins Mid vs. Aquagold International | Perkins Mid vs. Barloworld Ltd ADR |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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