Correlation Between HUMANA and New World
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By analyzing existing cross correlation between HUMANA INC and New World Fund, you can compare the effects of market volatilities on HUMANA and New World 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 New World. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and New World.
Diversification Opportunities for HUMANA and New World
Poor diversification
The 3 months correlation between HUMANA and New is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and New World Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New World Fund 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 New World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New World Fund has no effect on the direction of HUMANA i.e., HUMANA and New World go up and down completely randomly.
Pair Corralation between HUMANA and New World
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the New World. In addition to that, HUMANA is 1.69 times more volatile than New World Fund. It trades about -0.09 of its total potential returns per unit of risk. New World Fund is currently generating about 0.16 per unit of volatility. If you would invest 7,851 in New World Fund on November 27, 2024 and sell it today you would earn a total of 140.00 from holding New World Fund or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. New World Fund
Performance |
| Timeline |
| HUMANA INC |
| New World Fund |
HUMANA and New World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and New World
The main advantage of trading using opposite HUMANA and New World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, New World 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 New World will offset losses from the drop in New World's long position.| HUMANA vs. Amkor Technology | HUMANA vs. Primo Brands | HUMANA vs. The Coca Cola | HUMANA vs. Brandywine Realty Trust |
| New World vs. Smallcap World Fund | New World vs. Capital World Growth | New World vs. American Funds Fundamental | New World vs. Capital Income Builder |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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