Correlation Between HUMANA and DWS Municipal
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By analyzing existing cross correlation between HUMANA INC and DWS Municipal Income, you can compare the effects of market volatilities on HUMANA and DWS Municipal 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 DWS Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and DWS Municipal.
Diversification Opportunities for HUMANA and DWS Municipal
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and DWS is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and DWS Municipal Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DWS Municipal Income 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 DWS Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DWS Municipal Income has no effect on the direction of HUMANA i.e., HUMANA and DWS Municipal go up and down completely randomly.
Pair Corralation between HUMANA and DWS Municipal
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the DWS Municipal. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.23 times less risky than DWS Municipal. The bond trades about -0.01 of its potential returns per unit of risk. The DWS Municipal Income is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 837.00 in DWS Municipal Income on August 25, 2024 and sell it today you would earn a total of 153.00 from holding DWS Municipal Income or generate 18.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.94% |
| Values | Daily Returns |
HUMANA INC vs. DWS Municipal Income
Performance |
| Timeline |
| HUMANA INC |
| DWS Municipal Income |
HUMANA and DWS Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and DWS Municipal
The main advantage of trading using opposite HUMANA and DWS Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, DWS Municipal 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 DWS Municipal will offset losses from the drop in DWS Municipal's long position.| HUMANA vs. Deluxe | HUMANA vs. Vita Coco | HUMANA vs. Willamette Valley Vineyards | HUMANA vs. Global E Online |
| DWS Municipal vs. PowerUp Acquisition Corp | DWS Municipal vs. Aurora Innovation | DWS Municipal vs. HUMANA INC | DWS Municipal vs. Aquagold International |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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