Correlation Between HUMANA and Nuveen Amt
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By analyzing existing cross correlation between HUMANA INC and Nuveen Amt Free, you can compare the effects of market volatilities on HUMANA and Nuveen Amt 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 Nuveen Amt. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Nuveen Amt.
Diversification Opportunities for HUMANA and Nuveen Amt
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and Nuveen is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Nuveen Amt Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Amt Free 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 Nuveen Amt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Amt Free has no effect on the direction of HUMANA i.e., HUMANA and Nuveen Amt go up and down completely randomly.
Pair Corralation between HUMANA and Nuveen Amt
Assuming the 90 days trading horizon HUMANA INC is expected to generate 107.86 times more return on investment than Nuveen Amt. However, HUMANA is 107.86 times more volatile than Nuveen Amt Free. It trades about 0.07 of its potential returns per unit of risk. Nuveen Amt Free is currently generating about 0.06 per unit of risk. If you would invest 8,012 in HUMANA INC on September 2, 2024 and sell it today you would lose (317.00) from holding HUMANA INC or give up 3.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.95% |
| Values | Daily Returns |
HUMANA INC vs. Nuveen Amt Free
Performance |
| Timeline |
| HUMANA INC |
| Nuveen Amt Free |
HUMANA and Nuveen Amt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Nuveen Amt
The main advantage of trading using opposite HUMANA and Nuveen Amt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Nuveen Amt 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 Nuveen Amt will offset losses from the drop in Nuveen Amt's long position.The idea behind HUMANA INC and Nuveen Amt Free pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Nuveen Amt vs. MFS Investment Grade | Nuveen Amt vs. Eaton Vance Municipal | Nuveen Amt vs. DTF Tax Free | Nuveen Amt vs. Aquagold International |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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