Correlation Between HUMANA and Manning Napier
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By analyzing existing cross correlation between HUMANA INC and Manning Napier Equity, you can compare the effects of market volatilities on HUMANA and Manning Napier 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 Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Manning Napier.
Diversification Opportunities for HUMANA and Manning Napier
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Manning is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Manning Napier Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Equity 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 Manning Napier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manning Napier Equity has no effect on the direction of HUMANA i.e., HUMANA and Manning Napier go up and down completely randomly.
Pair Corralation between HUMANA and Manning Napier
Assuming the 90 days trading horizon HUMANA INC is expected to generate 128.58 times more return on investment than Manning Napier. However, HUMANA is 128.58 times more volatile than Manning Napier Equity. It trades about 0.08 of its potential returns per unit of risk. Manning Napier Equity is currently generating about 0.11 per unit of risk. If you would invest 7,887 in HUMANA INC on September 2, 2024 and sell it today you would lose (192.00) from holding HUMANA INC or give up 2.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.58% |
| Values | Daily Returns |
HUMANA INC vs. Manning Napier Equity
Performance |
| Timeline |
| HUMANA INC |
| Manning Napier Equity |
HUMANA and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Manning Napier
The main advantage of trading using opposite HUMANA and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Manning Napier 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 Manning Napier will offset losses from the drop in Manning Napier's long position.The idea behind HUMANA INC and Manning Napier Equity 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.| Manning Napier vs. Bbh Trust | Manning Napier vs. Lord Abbett Govt | Manning Napier vs. John Hancock Money | Manning Napier vs. Transamerica Funds |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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