Correlation Between HUMANA and Nationwide Investor
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By analyzing existing cross correlation between HUMANA INC and Nationwide Investor Destinations, you can compare the effects of market volatilities on HUMANA and Nationwide Investor 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 Nationwide Investor. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Nationwide Investor.
Diversification Opportunities for HUMANA and Nationwide Investor
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Nationwide is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Nationwide Investor Destinatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Investor 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 Nationwide Investor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Investor has no effect on the direction of HUMANA i.e., HUMANA and Nationwide Investor go up and down completely randomly.
Pair Corralation between HUMANA and Nationwide Investor
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Nationwide Investor. In addition to that, HUMANA is 2.29 times more volatile than Nationwide Investor Destinations. It trades about -0.22 of its total potential returns per unit of risk. Nationwide Investor Destinations is currently generating about 0.19 per unit of volatility. If you would invest 994.00 in Nationwide Investor Destinations on August 30, 2024 and sell it today you would earn a total of 21.00 from holding Nationwide Investor Destinations or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Nationwide Investor Destinatio
Performance |
| Timeline |
| HUMANA INC |
| Nationwide Investor |
HUMANA and Nationwide Investor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Nationwide Investor
The main advantage of trading using opposite HUMANA and Nationwide Investor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Nationwide Investor 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 Nationwide Investor will offset losses from the drop in Nationwide Investor's long position.The idea behind HUMANA INC and Nationwide Investor Destinations 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.| Nationwide Investor vs. American Balanced Fund | Nationwide Investor vs. American Balanced Fund | Nationwide Investor vs. HUMANA INC | Nationwide Investor 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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