Correlation Between HUMANA and Columbia Acorn
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By analyzing existing cross correlation between HUMANA INC and Columbia Acorn International, you can compare the effects of market volatilities on HUMANA and Columbia Acorn 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 Columbia Acorn. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Columbia Acorn.
Diversification Opportunities for HUMANA and Columbia Acorn
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and Columbia is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Columbia Acorn International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Acorn Inter 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 Columbia Acorn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Acorn Inter has no effect on the direction of HUMANA i.e., HUMANA and Columbia Acorn go up and down completely randomly.
Pair Corralation between HUMANA and Columbia Acorn
Assuming the 90 days trading horizon HUMANA INC is expected to generate 1.33 times more return on investment than Columbia Acorn. However, HUMANA is 1.33 times more volatile than Columbia Acorn International. It trades about 0.25 of its potential returns per unit of risk. Columbia Acorn International is currently generating about 0.16 per unit of risk. If you would invest 7,944 in HUMANA INC on October 24, 2024 and sell it today you would earn a total of 500.00 from holding HUMANA INC or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
HUMANA INC vs. Columbia Acorn International
Performance |
| Timeline |
| HUMANA INC |
| Columbia Acorn Inter |
HUMANA and Columbia Acorn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Columbia Acorn
The main advantage of trading using opposite HUMANA and Columbia Acorn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Columbia Acorn 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 Columbia Acorn will offset losses from the drop in Columbia Acorn's long position.| HUMANA vs. Daily Journal Corp | HUMANA vs. Pearson PLC ADR | HUMANA vs. Gannett Co | HUMANA vs. John Wiley Sons |
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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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