Correlation Between HUMANA and Floating Rate
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By analyzing existing cross correlation between HUMANA INC and Floating Rate Fund, you can compare the effects of market volatilities on HUMANA and Floating Rate 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 Floating Rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Floating Rate.
Diversification Opportunities for HUMANA and Floating Rate
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Floating is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Floating Rate Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Floating Rate 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 Floating Rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Floating Rate has no effect on the direction of HUMANA i.e., HUMANA and Floating Rate go up and down completely randomly.
Pair Corralation between HUMANA and Floating Rate
Assuming the 90 days trading horizon HUMANA INC is expected to generate 380.02 times more return on investment than Floating Rate. However, HUMANA is 380.02 times more volatile than Floating Rate Fund. It trades about 0.05 of its potential returns per unit of risk. Floating Rate Fund is currently generating about 0.24 per unit of risk. If you would invest 7,809 in HUMANA INC on August 29, 2024 and sell it today you would earn a total of 226.00 from holding HUMANA INC or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.29% |
| Values | Daily Returns |
HUMANA INC vs. Floating Rate Fund
Performance |
| Timeline |
| HUMANA INC |
| Floating Rate |
HUMANA and Floating Rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Floating Rate
The main advantage of trading using opposite HUMANA and Floating Rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Floating Rate 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 Floating Rate will offset losses from the drop in Floating Rate's long position.The idea behind HUMANA INC and Floating Rate Fund 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.| Floating Rate vs. Calvert Moderate Allocation | Floating Rate vs. Wisdomtree Siegel Moderate | Floating Rate vs. Jp Morgan Smartretirement | Floating Rate vs. Saat Moderate Strategy |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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