Correlation Between HUMANA and Amg Managers
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By analyzing existing cross correlation between HUMANA INC and Amg Managers Loomis, 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
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUMANA and Amg is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Amg Managers Loomis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Loomis 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 Loomis 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. In addition to that, HUMANA is 2.24 times more volatile than Amg Managers Loomis. It trades about -0.04 of its total potential returns per unit of risk. Amg Managers Loomis is currently generating about 0.09 per unit of volatility. If you would invest 2,108 in Amg Managers Loomis on September 1, 2024 and sell it today you would earn a total of 72.00 from holding Amg Managers Loomis or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.64% |
| Values | Daily Returns |
HUMANA INC vs. Amg Managers Loomis
Performance |
| Timeline |
| HUMANA INC |
| Amg Managers Loomis |
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.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Amg Managers vs. Pear Tree Polaris | Amg Managers vs. Kinetics Small Cap | Amg Managers vs. Tcw Total Return | Amg Managers vs. Thornburg International Value |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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