Correlation Between HUMANA and Abbey Capital
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By analyzing existing cross correlation between HUMANA INC and Abbey Capital Multi, you can compare the effects of market volatilities on HUMANA and Abbey Capital 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 Abbey Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Abbey Capital.
Diversification Opportunities for HUMANA and Abbey Capital
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Abbey is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Abbey Capital Multi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abbey Capital Multi 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 Abbey Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abbey Capital Multi has no effect on the direction of HUMANA i.e., HUMANA and Abbey Capital go up and down completely randomly.
Pair Corralation between HUMANA and Abbey Capital
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Abbey Capital. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.2 times less risky than Abbey Capital. The bond trades about -0.09 of its potential returns per unit of risk. The Abbey Capital Multi is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,161 in Abbey Capital Multi on September 3, 2024 and sell it today you would earn a total of 55.00 from holding Abbey Capital Multi or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.88% |
| Values | Daily Returns |
HUMANA INC vs. Abbey Capital Multi
Performance |
| Timeline |
| HUMANA INC |
| Abbey Capital Multi |
HUMANA and Abbey Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Abbey Capital
The main advantage of trading using opposite HUMANA and Abbey Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Abbey Capital 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 Abbey Capital will offset losses from the drop in Abbey Capital's long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
| Abbey Capital vs. Gabelli Convertible And | Abbey Capital vs. Allianzgi Convertible Income | Abbey Capital vs. Calamos Dynamic Convertible | Abbey Capital vs. Lord Abbett Convertible |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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