Correlation Between HUMANA and L Abbett
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By analyzing existing cross correlation between HUMANA INC and L Abbett Growth, you can compare the effects of market volatilities on HUMANA and L Abbett 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 L Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and L Abbett.
Diversification Opportunities for HUMANA and L Abbett
Excellent diversification
The 3 months correlation between HUMANA and LGLSX is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and L Abbett Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on L Abbett Growth 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 L Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of L Abbett Growth has no effect on the direction of HUMANA i.e., HUMANA and L Abbett go up and down completely randomly.
Pair Corralation between HUMANA and L Abbett
Assuming the 90 days trading horizon HUMANA INC is expected to generate 62.24 times more return on investment than L Abbett. However, HUMANA is 62.24 times more volatile than L Abbett Growth. It trades about 0.07 of its potential returns per unit of risk. L Abbett Growth is currently generating about 0.1 per unit of risk. If you would invest 7,980 in HUMANA INC on September 1, 2024 and sell it today you would lose (285.00) from holding HUMANA INC or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.51% |
| Values | Daily Returns |
HUMANA INC vs. L Abbett Growth
Performance |
| Timeline |
| HUMANA INC |
| L Abbett Growth |
HUMANA and L Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and L Abbett
The main advantage of trading using opposite HUMANA and L Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, L Abbett 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 L Abbett will offset losses from the drop in L Abbett's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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