Correlation Between HUMANA and High Yield
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By analyzing existing cross correlation between HUMANA INC and High Yield Bond, you can compare the effects of market volatilities on HUMANA and High Yield 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 High Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and High Yield.
Diversification Opportunities for HUMANA and High Yield
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and High is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and High Yield Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Yield Bond 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 High Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Yield Bond has no effect on the direction of HUMANA i.e., HUMANA and High Yield go up and down completely randomly.
Pair Corralation between HUMANA and High Yield
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the High Yield. In addition to that, HUMANA is 6.17 times more volatile than High Yield Bond. It trades about -0.09 of its total potential returns per unit of risk. High Yield Bond is currently generating about 0.2 per unit of volatility. If you would invest 986.00 in High Yield Bond on November 27, 2024 and sell it today you would earn a total of 6.00 from holding High Yield Bond or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. High Yield Bond
Performance |
| Timeline |
| HUMANA INC |
| High Yield Bond |
HUMANA and High Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and High Yield
The main advantage of trading using opposite HUMANA and High Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, High Yield 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 High Yield will offset losses from the drop in High Yield's long position.| HUMANA vs. Amkor Technology | HUMANA vs. Primo Brands | HUMANA vs. The Coca Cola | HUMANA vs. Brandywine Realty Trust |
| High Yield vs. Harbor Diversified International | High Yield vs. Tiaa Cref Lifestyle Conservative | High Yield vs. Aqr Diversified Arbitrage | High Yield vs. Diversified Bond Fund |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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