Correlation Between HUMANA and John Hancock
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By analyzing existing cross correlation between HUMANA INC and John Hancock Bond, you can compare the effects of market volatilities on HUMANA and John Hancock 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 John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and John Hancock.
Diversification Opportunities for HUMANA and John Hancock
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUMANA and John is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and John Hancock Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Bond 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 John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Bond has no effect on the direction of HUMANA i.e., HUMANA and John Hancock go up and down completely randomly.
Pair Corralation between HUMANA and John Hancock
Assuming the 90 days trading horizon HUMANA INC is expected to generate 193.68 times more return on investment than John Hancock. However, HUMANA is 193.68 times more volatile than John Hancock Bond. It trades about 0.07 of its potential returns per unit of risk. John Hancock Bond is currently generating about 0.04 per unit of risk. If you would invest 8,081 in HUMANA INC on August 29, 2024 and sell it today you would lose (46.00) from holding HUMANA INC or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.55% |
| Values | Daily Returns |
HUMANA INC vs. John Hancock Bond
Performance |
| Timeline |
| HUMANA INC |
| John Hancock Bond |
HUMANA and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and John Hancock
The main advantage of trading using opposite HUMANA and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock's long position.The idea behind HUMANA INC and John Hancock Bond 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.| John Hancock vs. Pimco Income Fund | John Hancock vs. HUMANA INC | John Hancock vs. Aquagold International | John Hancock 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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