Correlation Between HUMANA and Oakmark Select
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By analyzing existing cross correlation between HUMANA INC and Oakmark Select Fund, you can compare the effects of market volatilities on HUMANA and Oakmark Select 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 Oakmark Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Oakmark Select.
Diversification Opportunities for HUMANA and Oakmark Select
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Oakmark is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Oakmark Select Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark Select 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 Oakmark Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark Select has no effect on the direction of HUMANA i.e., HUMANA and Oakmark Select go up and down completely randomly.
Pair Corralation between HUMANA and Oakmark Select
Assuming the 90 days trading horizon HUMANA INC is expected to generate 58.23 times more return on investment than Oakmark Select. However, HUMANA is 58.23 times more volatile than Oakmark Select Fund. It trades about 0.05 of its potential returns per unit of risk. Oakmark Select Fund is currently generating about 0.08 per unit of risk. If you would invest 7,809 in HUMANA INC on August 29, 2024 and sell it today you would earn a total of 226.00 from holding HUMANA INC or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.29% |
| Values | Daily Returns |
HUMANA INC vs. Oakmark Select Fund
Performance |
| Timeline |
| HUMANA INC |
| Oakmark Select |
HUMANA and Oakmark Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Oakmark Select
The main advantage of trading using opposite HUMANA and Oakmark Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Oakmark Select 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 Oakmark Select will offset losses from the drop in Oakmark Select's long position.The idea behind HUMANA INC and Oakmark Select Fund 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.| Oakmark Select vs. Value Fund Investor | Oakmark Select vs. HUMANA INC | Oakmark Select vs. Aquagold International | Oakmark Select 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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