Correlation Between HUMANA and Pimco Short
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By analyzing existing cross correlation between HUMANA INC and Pimco Short Asset, you can compare the effects of market volatilities on HUMANA and Pimco Short 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 Pimco Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Pimco Short.
Diversification Opportunities for HUMANA and Pimco Short
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Pimco is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Pimco Short Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Short Asset 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 Pimco Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Short Asset has no effect on the direction of HUMANA i.e., HUMANA and Pimco Short go up and down completely randomly.
Pair Corralation between HUMANA and Pimco Short
Assuming the 90 days trading horizon HUMANA INC is expected to generate 13.05 times more return on investment than Pimco Short. However, HUMANA is 13.05 times more volatile than Pimco Short Asset. It trades about 0.25 of its potential returns per unit of risk. Pimco Short Asset is currently generating about 0.24 per unit of risk. If you would invest 7,944 in HUMANA INC on October 24, 2024 and sell it today you would earn a total of 500.00 from holding HUMANA INC or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
HUMANA INC vs. Pimco Short Asset
Performance |
| Timeline |
| HUMANA INC |
| Pimco Short Asset |
HUMANA and Pimco Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Pimco Short
The main advantage of trading using opposite HUMANA and Pimco Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Pimco Short 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 Pimco Short will offset losses from the drop in Pimco Short's long position.| HUMANA vs. Daily Journal Corp | HUMANA vs. Pearson PLC ADR | HUMANA vs. Gannett Co | HUMANA vs. John Wiley Sons |
| Pimco Short vs. Pimco Rae Worldwide | Pimco Short vs. Pimco Rae Worldwide | Pimco Short vs. Pimco Rae Worldwide | Pimco Short vs. Pimco Rae Worldwide |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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