Correlation Between HUMANA and Lkcm Small
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By analyzing existing cross correlation between HUMANA INC and Lkcm Small Cap, you can compare the effects of market volatilities on HUMANA and Lkcm Small 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 Lkcm Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Lkcm Small.
Diversification Opportunities for HUMANA and Lkcm Small
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Lkcm is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Lkcm Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lkcm Small Cap 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 Lkcm Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lkcm Small Cap has no effect on the direction of HUMANA i.e., HUMANA and Lkcm Small go up and down completely randomly.
Pair Corralation between HUMANA and Lkcm Small
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Lkcm Small. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.71 times less risky than Lkcm Small. The bond trades about -0.04 of its potential returns per unit of risk. The Lkcm Small Cap is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,023 in Lkcm Small Cap on September 1, 2024 and sell it today you would earn a total of 367.00 from holding Lkcm Small Cap or generate 18.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.64% |
| Values | Daily Returns |
HUMANA INC vs. Lkcm Small Cap
Performance |
| Timeline |
| HUMANA INC |
| Lkcm Small Cap |
HUMANA and Lkcm Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Lkcm Small
The main advantage of trading using opposite HUMANA and Lkcm Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Lkcm Small 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 Lkcm Small will offset losses from the drop in Lkcm Small'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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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