Correlation Between HUMANA and Jhancock Disciplined
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By analyzing existing cross correlation between HUMANA INC and Jhancock Disciplined Value, you can compare the effects of market volatilities on HUMANA and Jhancock Disciplined 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 Jhancock Disciplined. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Jhancock Disciplined.
Diversification Opportunities for HUMANA and Jhancock Disciplined
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Jhancock is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Jhancock Disciplined Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Disciplined 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 Jhancock Disciplined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Disciplined has no effect on the direction of HUMANA i.e., HUMANA and Jhancock Disciplined go up and down completely randomly.
Pair Corralation between HUMANA and Jhancock Disciplined
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Jhancock Disciplined. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.0 times less risky than Jhancock Disciplined. The bond trades about -0.15 of its potential returns per unit of risk. The Jhancock Disciplined Value is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,530 in Jhancock Disciplined Value on September 2, 2024 and sell it today you would earn a total of 229.00 from holding Jhancock Disciplined Value or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
HUMANA INC vs. Jhancock Disciplined Value
Performance |
| Timeline |
| HUMANA INC |
| Jhancock Disciplined |
HUMANA and Jhancock Disciplined Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Jhancock Disciplined
The main advantage of trading using opposite HUMANA and Jhancock Disciplined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Jhancock Disciplined 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 Jhancock Disciplined will offset losses from the drop in Jhancock Disciplined's long position.The idea behind HUMANA INC and Jhancock Disciplined Value 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.| Jhancock Disciplined vs. Davenport Small Cap | Jhancock Disciplined vs. Blackrock Sm Cap | Jhancock Disciplined vs. The Gabelli Small | Jhancock Disciplined vs. Principal Lifetime Hybrid |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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