Correlation Between HUMANA and High Income
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By analyzing existing cross correlation between HUMANA INC and High Income Fund, you can compare the effects of market volatilities on HUMANA and High Income 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 High Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and High Income.
Diversification Opportunities for HUMANA and High Income
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and High is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and High Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Income 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 High Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Income Fund has no effect on the direction of HUMANA i.e., HUMANA and High Income go up and down completely randomly.
Pair Corralation between HUMANA and High Income
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the High Income. In addition to that, HUMANA is 6.34 times more volatile than High Income Fund. It trades about -0.23 of its total potential returns per unit of risk. High Income Fund is currently generating about 0.26 per unit of volatility. If you would invest 863.00 in High Income Fund on August 24, 2024 and sell it today you would earn a total of 8.00 from holding High Income Fund or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. High Income Fund
Performance |
| Timeline |
| HUMANA INC |
| High Income Fund |
HUMANA and High Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and High Income
The main advantage of trading using opposite HUMANA and High Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, High Income 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 High Income will offset losses from the drop in High Income's long position.| HUMANA vs. Western Digital | HUMANA vs. Arrow Electronics | HUMANA vs. Anheuser Busch Inbev | HUMANA vs. Keurig Dr Pepper |
| High Income vs. Blackrock High Yield | High Income vs. HUMANA INC | High Income vs. Aquagold International | High Income 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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