Correlation Between HUMANA and Amg Managers
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By analyzing existing cross correlation between HUMANA INC and Amg Managers Montag, you can compare the effects of market volatilities on HUMANA and Amg Managers 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 Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Amg Managers.
Diversification Opportunities for HUMANA and Amg Managers
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Amg is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Amg Managers Montag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Montag 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 Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Montag has no effect on the direction of HUMANA i.e., HUMANA and Amg Managers go up and down completely randomly.
Pair Corralation between HUMANA and Amg Managers
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Amg Managers. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.52 times less risky than Amg Managers. The bond trades about -0.07 of its potential returns per unit of risk. The Amg Managers Montag is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,370 in Amg Managers Montag on August 29, 2024 and sell it today you would earn a total of 34.00 from holding Amg Managers Montag or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
HUMANA INC vs. Amg Managers Montag
Performance |
| Timeline |
| HUMANA INC |
| Amg Managers Montag |
HUMANA and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Amg Managers
The main advantage of trading using opposite HUMANA and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Amg Managers 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 Amg Managers will offset losses from the drop in Amg Managers' long position.The idea behind HUMANA INC and Amg Managers Montag pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Amg Managers vs. Growth Fund Of | Amg Managers vs. HUMANA INC | Amg Managers vs. Aquagold International | Amg Managers 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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