Correlation Between HUMANA and Massmutual Select
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By analyzing existing cross correlation between HUMANA INC and Massmutual Select Total, you can compare the effects of market volatilities on HUMANA and Massmutual Select 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 Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Massmutual Select.
Diversification Opportunities for HUMANA and Massmutual Select
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUMANA and Massmutual is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Massmutual Select Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Total 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 Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select Total has no effect on the direction of HUMANA i.e., HUMANA and Massmutual Select go up and down completely randomly.
Pair Corralation between HUMANA and Massmutual Select
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Massmutual Select. In addition to that, HUMANA is 2.32 times more volatile than Massmutual Select Total. It trades about -0.07 of its total potential returns per unit of risk. Massmutual Select Total is currently generating about 0.02 per unit of volatility. If you would invest 834.00 in Massmutual Select Total on November 27, 2024 and sell it today you would earn a total of 4.00 from holding Massmutual Select Total or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.67% |
| Values | Daily Returns |
HUMANA INC vs. Massmutual Select Total
Performance |
| Timeline |
| HUMANA INC |
| Massmutual Select Total |
HUMANA and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Massmutual Select
The main advantage of trading using opposite HUMANA and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Massmutual Select 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 Massmutual Select will offset losses from the drop in Massmutual Select's long position.| HUMANA vs. Amkor Technology | HUMANA vs. Primo Brands | HUMANA vs. The Coca Cola | HUMANA vs. Brandywine Realty Trust |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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