Correlation Between HUMANA and National Rural
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By analyzing existing cross correlation between HUMANA INC and National Rural Utilities, you can compare the effects of market volatilities on HUMANA and National Rural 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 National Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and National Rural.
Diversification Opportunities for HUMANA and National Rural
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and National is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and National Rural Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Rural Utilities 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 National Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Rural Utilities has no effect on the direction of HUMANA i.e., HUMANA and National Rural go up and down completely randomly.
Pair Corralation between HUMANA and National Rural
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the National Rural. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.0 times less risky than National Rural. The bond trades about -0.02 of its potential returns per unit of risk. The National Rural Utilities is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,219 in National Rural Utilities on August 31, 2024 and sell it today you would earn a total of 256.00 from holding National Rural Utilities or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.2% |
| Values | Daily Returns |
HUMANA INC vs. National Rural Utilities
Performance |
| Timeline |
| HUMANA INC |
| National Rural Utilities |
HUMANA and National Rural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and National Rural
The main advantage of trading using opposite HUMANA and National Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, National Rural 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 National Rural will offset losses from the drop in National Rural's long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
| National Rural vs. HUMANA INC | National Rural vs. SCOR PK | National Rural vs. Aquagold International | National Rural vs. Thrivent High Yield |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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