Correlation Between HUMANA and Neuberger Berman
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Neuberger Berman Guardian, you can compare the effects of market volatilities on HUMANA and Neuberger Berman 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 Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Neuberger Berman.
Diversification Opportunities for HUMANA and Neuberger Berman
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Neuberger is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Neuberger Berman Guardian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Guardian 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 Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman Guardian has no effect on the direction of HUMANA i.e., HUMANA and Neuberger Berman go up and down completely randomly.
Pair Corralation between HUMANA and Neuberger Berman
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Neuberger Berman. In addition to that, HUMANA is 1.1 times more volatile than Neuberger Berman Guardian. It trades about -0.22 of its total potential returns per unit of risk. Neuberger Berman Guardian is currently generating about 0.08 per unit of volatility. If you would invest 2,948 in Neuberger Berman Guardian on August 30, 2024 and sell it today you would earn a total of 82.00 from holding Neuberger Berman Guardian or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.35% |
| Values | Daily Returns |
HUMANA INC vs. Neuberger Berman Guardian
Performance |
| Timeline |
| HUMANA INC |
| Neuberger Berman Guardian |
HUMANA and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Neuberger Berman
The main advantage of trading using opposite HUMANA and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Neuberger Berman 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 Neuberger Berman will offset losses from the drop in Neuberger Berman's long position.The idea behind HUMANA INC and Neuberger Berman Guardian 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.| Neuberger Berman vs. Growth Fund Of | Neuberger Berman vs. HUMANA INC | Neuberger Berman vs. Aquagold International | Neuberger Berman 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |