Correlation Between HUMANA and Prudential Absolute
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By analyzing existing cross correlation between HUMANA INC and Prudential Absolute Return, you can compare the effects of market volatilities on HUMANA and Prudential Absolute 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 Prudential Absolute. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Prudential Absolute.
Diversification Opportunities for HUMANA and Prudential Absolute
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Prudential is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Prudential Absolute Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Absolute 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 Prudential Absolute. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Absolute has no effect on the direction of HUMANA i.e., HUMANA and Prudential Absolute go up and down completely randomly.
Pair Corralation between HUMANA and Prudential Absolute
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Prudential Absolute. In addition to that, HUMANA is 8.52 times more volatile than Prudential Absolute Return. It trades about -0.21 of its total potential returns per unit of risk. Prudential Absolute Return is currently generating about 0.23 per unit of volatility. If you would invest 906.00 in Prudential Absolute Return on August 31, 2024 and sell it today you would earn a total of 6.00 from holding Prudential Absolute Return or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Prudential Absolute Return
Performance |
| Timeline |
| HUMANA INC |
| Prudential Absolute |
HUMANA and Prudential Absolute Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Prudential Absolute
The main advantage of trading using opposite HUMANA and Prudential Absolute positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Prudential Absolute 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 Prudential Absolute will offset losses from the drop in Prudential Absolute's long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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