Correlation Between HUMANA and Meridian Growth
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By analyzing existing cross correlation between HUMANA INC and Meridian Growth Fund, you can compare the effects of market volatilities on HUMANA and Meridian Growth 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 Meridian Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Meridian Growth.
Diversification Opportunities for HUMANA and Meridian Growth
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Meridian is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Meridian Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meridian Growth 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 Meridian Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meridian Growth has no effect on the direction of HUMANA i.e., HUMANA and Meridian Growth go up and down completely randomly.
Pair Corralation between HUMANA and Meridian Growth
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Meridian Growth. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.53 times less risky than Meridian Growth. The bond trades about -0.04 of its potential returns per unit of risk. The Meridian Growth Fund is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,390 in Meridian Growth Fund on September 1, 2024 and sell it today you would earn a total of 414.00 from holding Meridian Growth Fund or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.64% |
| Values | Daily Returns |
HUMANA INC vs. Meridian Growth Fund
Performance |
| Timeline |
| HUMANA INC |
| Meridian Growth |
HUMANA and Meridian Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Meridian Growth
The main advantage of trading using opposite HUMANA and Meridian Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Meridian Growth 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 Meridian Growth will offset losses from the drop in Meridian Growth's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Meridian Growth vs. Meridian Equity Income | Meridian Growth vs. Meridian Equity Income | Meridian Growth vs. Meridian Growth Fund | Meridian Growth vs. Meridian Equity Income |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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