Correlation Between HUMANA and Pimco All
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By analyzing existing cross correlation between HUMANA INC and Pimco All Asset, you can compare the effects of market volatilities on HUMANA and Pimco All 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 All. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Pimco All.
Diversification Opportunities for HUMANA and Pimco All
Very weak diversification
The 3 months correlation between HUMANA and Pimco is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Pimco All Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco All 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 All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco All Asset has no effect on the direction of HUMANA i.e., HUMANA and Pimco All go up and down completely randomly.
Pair Corralation between HUMANA and Pimco All
Assuming the 90 days trading horizon HUMANA is expected to generate 2.22 times less return on investment than Pimco All. In addition to that, HUMANA is 1.53 times more volatile than Pimco All Asset. It trades about 0.02 of its total potential returns per unit of risk. Pimco All Asset is currently generating about 0.08 per unit of volatility. If you would invest 635.00 in Pimco All Asset on August 29, 2024 and sell it today you would earn a total of 25.00 from holding Pimco All Asset or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.83% |
| Values | Daily Returns |
HUMANA INC vs. Pimco All Asset
Performance |
| Timeline |
| HUMANA INC |
| Pimco All Asset |
HUMANA and Pimco All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Pimco All
The main advantage of trading using opposite HUMANA and Pimco All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Pimco All 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 All will offset losses from the drop in Pimco All's long position.The idea behind HUMANA INC and Pimco All Asset 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.| Pimco All vs. All Asset Fund | Pimco All vs. HUMANA INC | Pimco All vs. Aquagold International | Pimco All 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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