Correlation Between HUMANA and Locorr Market
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By analyzing existing cross correlation between HUMANA INC and Locorr Market Trend, you can compare the effects of market volatilities on HUMANA and Locorr Market 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 Locorr Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Locorr Market.
Diversification Opportunities for HUMANA and Locorr Market
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Locorr is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Locorr Market Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Locorr Market Trend 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 Locorr Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Locorr Market Trend has no effect on the direction of HUMANA i.e., HUMANA and Locorr Market go up and down completely randomly.
Pair Corralation between HUMANA and Locorr Market
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Locorr Market. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.37 times less risky than Locorr Market. The bond trades about -0.07 of its potential returns per unit of risk. The Locorr Market Trend is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,068 in Locorr Market Trend on August 29, 2024 and sell it today you would earn a total of 13.00 from holding Locorr Market Trend or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
HUMANA INC vs. Locorr Market Trend
Performance |
| Timeline |
| HUMANA INC |
| Locorr Market Trend |
HUMANA and Locorr Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Locorr Market
The main advantage of trading using opposite HUMANA and Locorr Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Locorr Market 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 Locorr Market will offset losses from the drop in Locorr Market's long position.The idea behind HUMANA INC and Locorr Market Trend 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.| Locorr Market vs. Pimco Trends Managed | Locorr Market vs. Pimco Trends Managed | Locorr Market vs. HUMANA INC | Locorr Market vs. Aquagold International |
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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