Correlation Between HUMANA and Real Estate
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By analyzing existing cross correlation between HUMANA INC and Real Estate Debt, you can compare the effects of market volatilities on HUMANA and Real Estate 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 Real Estate. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Real Estate.
Diversification Opportunities for HUMANA and Real Estate
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUMANA and Real is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Real Estate Debt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Real Estate Debt 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 Real Estate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Estate Debt has no effect on the direction of HUMANA i.e., HUMANA and Real Estate go up and down completely randomly.
Pair Corralation between HUMANA and Real Estate
Assuming the 90 days trading horizon HUMANA INC is expected to generate 100.75 times more return on investment than Real Estate. However, HUMANA is 100.75 times more volatile than Real Estate Debt. It trades about 0.07 of its potential returns per unit of risk. Real Estate Debt is currently generating about 0.06 per unit of risk. If you would invest 8,074 in HUMANA INC on September 3, 2024 and sell it today you would lose (39.00) from holding HUMANA INC or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.74% |
| Values | Daily Returns |
HUMANA INC vs. Real Estate Debt
Performance |
| Timeline |
| HUMANA INC |
| Real Estate Debt |
HUMANA and Real Estate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Real Estate
The main advantage of trading using opposite HUMANA and Real Estate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Real Estate 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 Real Estate will offset losses from the drop in Real Estate's long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
| Real Estate vs. Artisan High Income | Real Estate vs. Gmo High Yield | Real Estate vs. Vanguard Star Fund | Real Estate vs. Siit High Yield |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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