Correlation Between HUMANA and Catalyst Mlp
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By analyzing existing cross correlation between HUMANA INC and Catalyst Mlp Infrastructure, you can compare the effects of market volatilities on HUMANA and Catalyst Mlp 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 Catalyst Mlp. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Catalyst Mlp.
Diversification Opportunities for HUMANA and Catalyst Mlp
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Catalyst is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Catalyst Mlp Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Mlp Infrast 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 Catalyst Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Mlp Infrast has no effect on the direction of HUMANA i.e., HUMANA and Catalyst Mlp go up and down completely randomly.
Pair Corralation between HUMANA and Catalyst Mlp
Assuming the 90 days trading horizon HUMANA is expected to generate 66.32 times less return on investment than Catalyst Mlp. But when comparing it to its historical volatility, HUMANA INC is 1.52 times less risky than Catalyst Mlp. It trades about 0.0 of its potential returns per unit of risk. Catalyst Mlp Infrastructure is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,921 in Catalyst Mlp Infrastructure on September 12, 2024 and sell it today you would earn a total of 947.00 from holding Catalyst Mlp Infrastructure or generate 49.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.88% |
| Values | Daily Returns |
HUMANA INC vs. Catalyst Mlp Infrastructure
Performance |
| Timeline |
| HUMANA INC |
| Catalyst Mlp Infrast |
HUMANA and Catalyst Mlp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Catalyst Mlp
The main advantage of trading using opposite HUMANA and Catalyst Mlp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Catalyst Mlp 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 Catalyst Mlp will offset losses from the drop in Catalyst Mlp's long position.The idea behind HUMANA INC and Catalyst Mlp Infrastructure 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.| Catalyst Mlp vs. Oppenheimer Steelpath Mlp | Catalyst Mlp vs. Oppenheimer Steelpath Mlp | Catalyst Mlp vs. HUMANA INC | Catalyst Mlp 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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