Correlation Between HUMANA and Prudential Day
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Prudential Day One, you can compare the effects of market volatilities on HUMANA and Prudential Day 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 Day. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Prudential Day.
Diversification Opportunities for HUMANA and Prudential Day
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Prudential is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Prudential Day One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Day One 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 Day. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Day One has no effect on the direction of HUMANA i.e., HUMANA and Prudential Day go up and down completely randomly.
Pair Corralation between HUMANA and Prudential Day
Assuming the 90 days trading horizon HUMANA is expected to generate 33.95 times less return on investment than Prudential Day. But when comparing it to its historical volatility, HUMANA INC is 1.24 times less risky than Prudential Day. It trades about 0.0 of its potential returns per unit of risk. Prudential Day One is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,187 in Prudential Day One on September 12, 2024 and sell it today you would earn a total of 267.00 from holding Prudential Day One or generate 22.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.88% |
| Values | Daily Returns |
HUMANA INC vs. Prudential Day One
Performance |
| Timeline |
| HUMANA INC |
| Prudential Day One |
HUMANA and Prudential Day Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Prudential Day
The main advantage of trading using opposite HUMANA and Prudential Day positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Prudential Day 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 Day will offset losses from the drop in Prudential Day's long position.The idea behind HUMANA INC and Prudential Day One 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.| Prudential Day vs. Vanguard Target Retirement | Prudential Day vs. American Funds 2050 | Prudential Day vs. HUMANA INC | Prudential Day 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |