Correlation Between HUMANA and Thornburg Limited
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By analyzing existing cross correlation between HUMANA INC and Thornburg Limited Term, you can compare the effects of market volatilities on HUMANA and Thornburg Limited 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 Thornburg Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Thornburg Limited.
Diversification Opportunities for HUMANA and Thornburg Limited
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUMANA and THORNBURG is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Thornburg Limited Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thornburg Limited Term 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 Thornburg Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thornburg Limited Term has no effect on the direction of HUMANA i.e., HUMANA and Thornburg Limited go up and down completely randomly.
Pair Corralation between HUMANA and Thornburg Limited
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Thornburg Limited. In addition to that, HUMANA is 5.4 times more volatile than Thornburg Limited Term. It trades about -0.04 of its total potential returns per unit of risk. Thornburg Limited Term is currently generating about 0.18 per unit of volatility. If you would invest 1,320 in Thornburg Limited Term on September 1, 2024 and sell it today you would earn a total of 39.00 from holding Thornburg Limited Term or generate 2.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
HUMANA INC vs. Thornburg Limited Term
Performance |
| Timeline |
| HUMANA INC |
| Thornburg Limited Term |
HUMANA and Thornburg Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Thornburg Limited
The main advantage of trading using opposite HUMANA and Thornburg Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Thornburg Limited 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 Thornburg Limited will offset losses from the drop in Thornburg Limited'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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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