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 generate 115.37 times more return on investment than Abbey Capital. However, HUMANA is 115.37 times more volatile than Abbey Capital Multi. It trades about 0.08 of its potential returns per unit of risk. Abbey Capital Multi is currently generating about 0.04 per unit of risk. If you would invest 7,917 in HUMANA INC on August 31, 2024 and sell it today you would lose (222.00) from holding HUMANA INC or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.32% |
| 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. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
| Abbey Capital vs. Mfs International Diversification | Abbey Capital vs. HUMANA INC | Abbey Capital vs. Aquagold International | Abbey Capital vs. Barloworld Ltd ADR |
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 Correlations module to find global opportunities by holding instruments from different markets.
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