Correlation Between HUMANA and NextNav Warrant
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By analyzing existing cross correlation between HUMANA INC and NextNav Warrant, you can compare the effects of market volatilities on HUMANA and NextNav Warrant 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 NextNav Warrant. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and NextNav Warrant.
Diversification Opportunities for HUMANA and NextNav Warrant
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and NextNav is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and NextNav Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextNav Warrant 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 NextNav Warrant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NextNav Warrant has no effect on the direction of HUMANA i.e., HUMANA and NextNav Warrant go up and down completely randomly.
Pair Corralation between HUMANA and NextNav Warrant
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the NextNav Warrant. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 4.86 times less risky than NextNav Warrant. The bond trades about -0.25 of its potential returns per unit of risk. The NextNav Warrant is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 429.00 in NextNav Warrant on August 28, 2024 and sell it today you would earn a total of 203.00 from holding NextNav Warrant or generate 47.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. NextNav Warrant
Performance |
| Timeline |
| HUMANA INC |
| NextNav Warrant |
HUMANA and NextNav Warrant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and NextNav Warrant
The main advantage of trading using opposite HUMANA and NextNav Warrant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, NextNav Warrant 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 NextNav Warrant will offset losses from the drop in NextNav Warrant's long position.| HUMANA vs. Ultra Clean Holdings | HUMANA vs. Dream Homes Development | HUMANA vs. JBG SMITH Properties | HUMANA vs. Allegheny Technologies Incorporated |
| NextNav Warrant vs. Aquagold International | NextNav Warrant vs. Morningstar Unconstrained Allocation | NextNav Warrant vs. Thrivent High Yield | NextNav Warrant vs. Via Renewables |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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