Correlation Between HUMANA and Aquila Tax-free
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By analyzing existing cross correlation between HUMANA INC and Aquila Tax Free Trust, you can compare the effects of market volatilities on HUMANA and Aquila Tax-free 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 Aquila Tax-free. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Aquila Tax-free.
Diversification Opportunities for HUMANA and Aquila Tax-free
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and Aquila is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Aquila Tax Free Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquila Tax 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 Aquila Tax-free. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquila Tax Free has no effect on the direction of HUMANA i.e., HUMANA and Aquila Tax-free go up and down completely randomly.
Pair Corralation between HUMANA and Aquila Tax-free
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Aquila Tax-free. In addition to that, HUMANA is 4.16 times more volatile than Aquila Tax Free Trust. It trades about -0.28 of its total potential returns per unit of risk. Aquila Tax Free Trust is currently generating about 0.13 per unit of volatility. If you would invest 1,021 in Aquila Tax Free Trust on August 25, 2024 and sell it today you would earn a total of 7.00 from holding Aquila Tax Free Trust or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Aquila Tax Free Trust
Performance |
| Timeline |
| HUMANA INC |
| Aquila Tax Free |
HUMANA and Aquila Tax-free Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Aquila Tax-free
The main advantage of trading using opposite HUMANA and Aquila Tax-free positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Aquila Tax-free 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 Aquila Tax-free will offset losses from the drop in Aquila Tax-free's long position.| HUMANA vs. Drilling Tools International | HUMANA vs. Delek Drilling | HUMANA vs. Vera Bradley | HUMANA vs. Duluth Holdings |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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