Correlation Between HUMANA and Lord Abbett
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By analyzing existing cross correlation between HUMANA INC and Lord Abbett International, you can compare the effects of market volatilities on HUMANA and Lord 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 Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Lord Abbett.
Diversification Opportunities for HUMANA and Lord Abbett
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Lord is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Lord Abbett International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett International 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 Lord Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Abbett International has no effect on the direction of HUMANA i.e., HUMANA and Lord Abbett go up and down completely randomly.
Pair Corralation between HUMANA and Lord Abbett
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Lord Abbett. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.2 times less risky than Lord Abbett. The bond trades about -0.03 of its potential returns per unit of risk. The Lord Abbett International is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,885 in Lord Abbett International on September 1, 2024 and sell it today you would earn a total of 76.00 from holding Lord Abbett International or generate 4.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.35% |
| Values | Daily Returns |
HUMANA INC vs. Lord Abbett International
Performance |
| Timeline |
| HUMANA INC |
| Lord Abbett International |
HUMANA and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Lord Abbett
The main advantage of trading using opposite HUMANA and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Lord 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 Lord Abbett will offset losses from the drop in Lord Abbett's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Focused | Lord Abbett vs. Floating Rate Fund |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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