Correlation Between HUMANA and Blue Owl
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By analyzing existing cross correlation between HUMANA INC and Blue Owl Capital, you can compare the effects of market volatilities on HUMANA and Blue Owl 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 Blue Owl. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Blue Owl.
Diversification Opportunities for HUMANA and Blue Owl
Excellent diversification
The 3 months correlation between HUMANA and Blue is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Blue Owl Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Owl Capital 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 Blue Owl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Owl Capital has no effect on the direction of HUMANA i.e., HUMANA and Blue Owl go up and down completely randomly.
Pair Corralation between HUMANA and Blue Owl
Assuming the 90 days trading horizon HUMANA INC is expected to generate 104.24 times more return on investment than Blue Owl. However, HUMANA is 104.24 times more volatile than Blue Owl Capital. It trades about 0.08 of its potential returns per unit of risk. Blue Owl Capital is currently generating about 0.09 per unit of risk. If you would invest 7,887 in HUMANA INC on September 1, 2024 and sell it today you would lose (192.00) from holding HUMANA INC or give up 2.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.31% |
| Values | Daily Returns |
HUMANA INC vs. Blue Owl Capital
Performance |
| Timeline |
| HUMANA INC |
| Blue Owl Capital |
HUMANA and Blue Owl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Blue Owl
The main advantage of trading using opposite HUMANA and Blue Owl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Blue Owl 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 Blue Owl will offset losses from the drop in Blue Owl's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Blue Owl vs. HUTCHMED DRC | Blue Owl vs. RadNet Inc | Blue Owl vs. Four Seasons Education | Blue Owl vs. 51Talk Online Education |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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