Correlation Between HUMANA and Limited Term
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By analyzing existing cross correlation between HUMANA INC and Limited Term Tax, you can compare the effects of market volatilities on HUMANA and Limited Term 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 Limited Term. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Limited Term.
Diversification Opportunities for HUMANA and Limited Term
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and LIMITED is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Limited Term Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Limited Term Tax 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 Limited Term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Limited Term Tax has no effect on the direction of HUMANA i.e., HUMANA and Limited Term go up and down completely randomly.
Pair Corralation between HUMANA and Limited Term
Assuming the 90 days trading horizon HUMANA INC is expected to generate 574.5 times more return on investment than Limited Term. However, HUMANA is 574.5 times more volatile than Limited Term Tax. It trades about 0.07 of its potential returns per unit of risk. Limited Term Tax is currently generating about 0.09 per unit of risk. If you would invest 8,074 in HUMANA INC on September 4, 2024 and sell it today you would lose (39.00) from holding HUMANA INC or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.72% |
| Values | Daily Returns |
HUMANA INC vs. Limited Term Tax
Performance |
| Timeline |
| HUMANA INC |
| Limited Term Tax |
HUMANA and Limited Term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Limited Term
The main advantage of trading using opposite HUMANA and Limited Term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Limited Term 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 Limited Term will offset losses from the drop in Limited Term's long position.| HUMANA vs. Usio Inc | HUMANA vs. MACOM Technology Solutions | HUMANA vs. Amkor Technology | HUMANA vs. Analog Devices |
| Limited Term vs. Tax Exempt Bond | Limited Term vs. Intermediate Bond Fund | Limited Term vs. American High Income Municipal | Limited Term vs. Us Government Securities |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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