Correlation Between HUMANA and Roundhill Magnificent
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By analyzing existing cross correlation between HUMANA INC and Roundhill Magnificent Seven, you can compare the effects of market volatilities on HUMANA and Roundhill Magnificent 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 Roundhill Magnificent. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Roundhill Magnificent.
Diversification Opportunities for HUMANA and Roundhill Magnificent
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Roundhill is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Roundhill Magnificent Seven in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roundhill Magnificent 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 Roundhill Magnificent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roundhill Magnificent has no effect on the direction of HUMANA i.e., HUMANA and Roundhill Magnificent go up and down completely randomly.
Pair Corralation between HUMANA and Roundhill Magnificent
Assuming the 90 days trading horizon HUMANA INC is expected to generate 60.19 times more return on investment than Roundhill Magnificent. However, HUMANA is 60.19 times more volatile than Roundhill Magnificent Seven. It trades about 0.08 of its potential returns per unit of risk. Roundhill Magnificent Seven is currently generating about 0.13 per unit of risk. If you would invest 8,118 in HUMANA INC on August 26, 2024 and sell it today you would lose (423.00) from holding HUMANA INC or give up 5.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.43% |
| Values | Daily Returns |
HUMANA INC vs. Roundhill Magnificent Seven
Performance |
| Timeline |
| HUMANA INC |
| Roundhill Magnificent |
HUMANA and Roundhill Magnificent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Roundhill Magnificent
The main advantage of trading using opposite HUMANA and Roundhill Magnificent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Roundhill Magnificent 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 Roundhill Magnificent will offset losses from the drop in Roundhill Magnificent's long position.| HUMANA vs. Deluxe | HUMANA vs. Vita Coco | HUMANA vs. Willamette Valley Vineyards | HUMANA vs. Global E Online |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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