Correlation Between HUMANA and Mainstay Large
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By analyzing existing cross correlation between HUMANA INC and Mainstay Large Cap, you can compare the effects of market volatilities on HUMANA and Mainstay Large 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 Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Mainstay Large.
Diversification Opportunities for HUMANA and Mainstay Large
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Mainstay is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap 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 Mainstay Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of HUMANA i.e., HUMANA and Mainstay Large go up and down completely randomly.
Pair Corralation between HUMANA and Mainstay Large
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Mainstay Large. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.88 times less risky than Mainstay Large. The bond trades about -0.07 of its potential returns per unit of risk. The Mainstay Large Cap is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,078 in Mainstay Large Cap on August 29, 2024 and sell it today you would earn a total of 39.00 from holding Mainstay Large Cap or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
HUMANA INC vs. Mainstay Large Cap
Performance |
| Timeline |
| HUMANA INC |
| Mainstay Large Cap |
HUMANA and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Mainstay Large
The main advantage of trading using opposite HUMANA and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Mainstay Large 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 Mainstay Large will offset losses from the drop in Mainstay Large's long position.The idea behind HUMANA INC and Mainstay Large Cap 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.| Mainstay Large vs. Growth Fund Of | Mainstay Large vs. HUMANA INC | Mainstay Large vs. Aquagold International | Mainstay Large 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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