Correlation Between HUMANA and Massmutual Premier
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By analyzing existing cross correlation between HUMANA INC and Massmutual Premier Global, you can compare the effects of market volatilities on HUMANA and Massmutual Premier 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 Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Massmutual Premier.
Diversification Opportunities for HUMANA and Massmutual Premier
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUMANA and Massmutual is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Massmutual Premier Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier Global 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 Massmutual Premier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Premier Global has no effect on the direction of HUMANA i.e., HUMANA and Massmutual Premier go up and down completely randomly.
Pair Corralation between HUMANA and Massmutual Premier
Assuming the 90 days trading horizon HUMANA INC is expected to generate 51.08 times more return on investment than Massmutual Premier. However, HUMANA is 51.08 times more volatile than Massmutual Premier Global. It trades about 0.07 of its potential returns per unit of risk. Massmutual Premier Global is currently generating about 0.01 per unit of risk. If you would invest 7,664 in HUMANA INC on November 27, 2024 and sell it today you would earn a total of 235.00 from holding HUMANA INC or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.33% |
| Values | Daily Returns |
HUMANA INC vs. Massmutual Premier Global
Performance |
| Timeline |
| HUMANA INC |
| Massmutual Premier Global |
HUMANA and Massmutual Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Massmutual Premier
The main advantage of trading using opposite HUMANA and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Massmutual Premier 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 Massmutual Premier will offset losses from the drop in Massmutual Premier's long position.| HUMANA vs. Amkor Technology | HUMANA vs. Primo Brands | HUMANA vs. The Coca Cola | HUMANA vs. Brandywine Realty Trust |
| Massmutual Premier vs. Vanguard Financials Index | Massmutual Premier vs. Icon Financial Fund | Massmutual Premier vs. Gabelli Global Financial | Massmutual Premier vs. Blackrock Financial Institutions |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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