Correlation Between HUMANA and Kentucky Tax-free
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By analyzing existing cross correlation between HUMANA INC and Kentucky Tax Free Income, you can compare the effects of market volatilities on HUMANA and Kentucky Tax-free 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 Kentucky Tax-free. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Kentucky Tax-free.
Diversification Opportunities for HUMANA and Kentucky Tax-free
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUMANA and KENTUCKY is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Kentucky Tax Free Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kentucky Tax Free 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 Kentucky Tax-free. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kentucky Tax Free has no effect on the direction of HUMANA i.e., HUMANA and Kentucky Tax-free go up and down completely randomly.
Pair Corralation between HUMANA and Kentucky Tax-free
Assuming the 90 days trading horizon HUMANA INC is expected to generate 351.88 times more return on investment than Kentucky Tax-free. However, HUMANA is 351.88 times more volatile than Kentucky Tax Free Income. It trades about 0.07 of its potential returns per unit of risk. Kentucky Tax Free Income is currently generating about 0.05 per unit of risk. If you would invest 7,723 in HUMANA INC on November 19, 2024 and sell it today you would earn a total of 176.00 from holding HUMANA INC or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.15% |
| Values | Daily Returns |
HUMANA INC vs. Kentucky Tax Free Income
Performance |
| Timeline |
| HUMANA INC |
| Kentucky Tax Free |
HUMANA and Kentucky Tax-free Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Kentucky Tax-free
The main advantage of trading using opposite HUMANA and Kentucky Tax-free positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Kentucky Tax-free 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 Kentucky Tax-free will offset losses from the drop in Kentucky Tax-free's long position.| HUMANA vs. ioneer Ltd American | HUMANA vs. Griffon | HUMANA vs. Hurco Companies | HUMANA vs. Perseus Mining Limited |
| Kentucky Tax-free vs. Barings Active Short | Kentucky Tax-free vs. Pioneer Short Term | Kentucky Tax-free vs. Transam Short Term Bond | Kentucky Tax-free vs. Siit Ultra Short |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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