Correlation Between HUMANA and Us Real
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By analyzing existing cross correlation between HUMANA INC and Us Real Estate, you can compare the effects of market volatilities on HUMANA and Us Real 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 Us Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Us Real.
Diversification Opportunities for HUMANA and Us Real
Excellent diversification
The 3 months correlation between HUMANA and MSULX is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Us Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Real Estate 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 Us Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Real Estate has no effect on the direction of HUMANA i.e., HUMANA and Us Real go up and down completely randomly.
Pair Corralation between HUMANA and Us Real
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Us Real. In addition to that, HUMANA is 1.17 times more volatile than Us Real Estate. It trades about -0.16 of its total potential returns per unit of risk. Us Real Estate is currently generating about 0.02 per unit of volatility. If you would invest 961.00 in Us Real Estate on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Us Real Estate or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.56% |
| Values | Daily Returns |
HUMANA INC vs. Us Real Estate
Performance |
| Timeline |
| HUMANA INC |
| Us Real Estate |
HUMANA and Us Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Us Real
The main advantage of trading using opposite HUMANA and Us Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Us Real 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 Us Real will offset losses from the drop in Us Real's long position.The idea behind HUMANA INC and Us Real Estate 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.| Us Real vs. Franklin Natural Resources | Us Real vs. HUMANA INC | Us Real vs. Aquagold International | Us Real 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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