Correlation Between HUMANA and Needham Small
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By analyzing existing cross correlation between HUMANA INC and Needham Small Cap, you can compare the effects of market volatilities on HUMANA and Needham Small 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 Needham Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Needham Small.
Diversification Opportunities for HUMANA and Needham Small
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Needham is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Needham Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Needham Small Cap 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 Needham Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Needham Small Cap has no effect on the direction of HUMANA i.e., HUMANA and Needham Small go up and down completely randomly.
Pair Corralation between HUMANA and Needham Small
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Needham Small. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.42 times less risky than Needham Small. The bond trades about -0.21 of its potential returns per unit of risk. The Needham Small Cap is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,752 in Needham Small Cap on September 1, 2024 and sell it today you would earn a total of 144.00 from holding Needham Small Cap or generate 8.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Needham Small Cap
Performance |
| Timeline |
| HUMANA INC |
| Needham Small Cap |
HUMANA and Needham Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Needham Small
The main advantage of trading using opposite HUMANA and Needham Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Needham Small 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 Needham Small will offset losses from the drop in Needham Small's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Needham Small vs. Needham Aggressive Growth | Needham Small vs. Needham Growth Fund | Needham Small vs. Baron Opportunity Fund | Needham Small vs. Jacob Micro Cap |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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