Correlation Between HUMANA and Mainstay Conservative
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By analyzing existing cross correlation between HUMANA INC and Mainstay Conservative Etf, you can compare the effects of market volatilities on HUMANA and Mainstay Conservative 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 Conservative. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Mainstay Conservative.
Diversification Opportunities for HUMANA and Mainstay Conservative
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Mainstay is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Mainstay Conservative Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Conservative Etf 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 Conservative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Conservative Etf has no effect on the direction of HUMANA i.e., HUMANA and Mainstay Conservative go up and down completely randomly.
Pair Corralation between HUMANA and Mainstay Conservative
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Mainstay Conservative. In addition to that, HUMANA is 1.85 times more volatile than Mainstay Conservative Etf. It trades about -0.16 of its total potential returns per unit of risk. Mainstay Conservative Etf is currently generating about 0.06 per unit of volatility. If you would invest 1,111 in Mainstay Conservative Etf on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Mainstay Conservative Etf or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.02% |
| Values | Daily Returns |
HUMANA INC vs. Mainstay Conservative Etf
Performance |
| Timeline |
| HUMANA INC |
| Mainstay Conservative Etf |
HUMANA and Mainstay Conservative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Mainstay Conservative
The main advantage of trading using opposite HUMANA and Mainstay Conservative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Mainstay Conservative 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 Conservative will offset losses from the drop in Mainstay Conservative's long position.The idea behind HUMANA INC and Mainstay Conservative Etf 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 Conservative vs. Vanguard Wellesley Income | Mainstay Conservative vs. HUMANA INC | Mainstay Conservative vs. Aquagold International | Mainstay Conservative 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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