Correlation Between HUMANA and Growth Portfolio
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By analyzing existing cross correlation between HUMANA INC and Growth Portfolio Class, you can compare the effects of market volatilities on HUMANA and Growth Portfolio 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 Growth Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Growth Portfolio.
Diversification Opportunities for HUMANA and Growth Portfolio
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Growth is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Growth Portfolio Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Portfolio Class 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 Growth Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Portfolio Class has no effect on the direction of HUMANA i.e., HUMANA and Growth Portfolio go up and down completely randomly.
Pair Corralation between HUMANA and Growth Portfolio
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Growth Portfolio. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 3.2 times less risky than Growth Portfolio. The bond trades about -0.07 of its potential returns per unit of risk. The Growth Portfolio Class is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest 4,188 in Growth Portfolio Class on August 29, 2024 and sell it today you would earn a total of 1,006 from holding Growth Portfolio Class or generate 24.02% 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. Growth Portfolio Class
Performance |
| Timeline |
| HUMANA INC |
| Growth Portfolio Class |
HUMANA and Growth Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Growth Portfolio
The main advantage of trading using opposite HUMANA and Growth Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Growth Portfolio 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 Growth Portfolio will offset losses from the drop in Growth Portfolio's long position.The idea behind HUMANA INC and Growth Portfolio Class 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.| Growth Portfolio vs. Growth Fund Of | Growth Portfolio vs. HUMANA INC | Growth Portfolio vs. Aquagold International | Growth Portfolio 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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