Correlation Between HUMANA and Nebraska Municipal
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By analyzing existing cross correlation between HUMANA INC and Nebraska Municipal Fund, you can compare the effects of market volatilities on HUMANA and Nebraska Municipal 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 Nebraska Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Nebraska Municipal.
Diversification Opportunities for HUMANA and Nebraska Municipal
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Nebraska is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Nebraska Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nebraska Municipal 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 Nebraska Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nebraska Municipal has no effect on the direction of HUMANA i.e., HUMANA and Nebraska Municipal go up and down completely randomly.
Pair Corralation between HUMANA and Nebraska Municipal
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Nebraska Municipal. In addition to that, HUMANA is 3.75 times more volatile than Nebraska Municipal Fund. It trades about -0.09 of its total potential returns per unit of risk. Nebraska Municipal Fund is currently generating about 0.07 per unit of volatility. If you would invest 920.00 in Nebraska Municipal Fund on November 27, 2024 and sell it today you would earn a total of 3.00 from holding Nebraska Municipal Fund or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Nebraska Municipal Fund
Performance |
| Timeline |
| HUMANA INC |
| Nebraska Municipal |
HUMANA and Nebraska Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Nebraska Municipal
The main advantage of trading using opposite HUMANA and Nebraska Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Nebraska Municipal 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 Nebraska Municipal will offset losses from the drop in Nebraska Municipal's long position.| HUMANA vs. Amkor Technology | HUMANA vs. Primo Brands | HUMANA vs. The Coca Cola | HUMANA vs. Brandywine Realty Trust |
| Nebraska Municipal vs. Aqr Managed Futures | Nebraska Municipal vs. The Hartford Inflation | Nebraska Municipal vs. Ab Bond Inflation | Nebraska Municipal vs. The Hartford Inflation |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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