Correlation Between HUMANA and PUDO
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By analyzing existing cross correlation between HUMANA INC and PUDO Inc, you can compare the effects of market volatilities on HUMANA and PUDO 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 PUDO. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and PUDO.
Diversification Opportunities for HUMANA and PUDO
Very good diversification
The 3 months correlation between HUMANA and PUDO is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and PUDO Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PUDO Inc 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 PUDO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PUDO Inc has no effect on the direction of HUMANA i.e., HUMANA and PUDO go up and down completely randomly.
Pair Corralation between HUMANA and PUDO
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the PUDO. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 72.66 times less risky than PUDO. The bond trades about -0.04 of its potential returns per unit of risk. The PUDO Inc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 32.00 in PUDO Inc on September 12, 2024 and sell it today you would lose (14.00) from holding PUDO Inc or give up 43.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.57% |
| Values | Daily Returns |
HUMANA INC vs. PUDO Inc
Performance |
| Timeline |
| HUMANA INC |
| PUDO Inc |
HUMANA and PUDO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and PUDO
The main advantage of trading using opposite HUMANA and PUDO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, PUDO 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 PUDO will offset losses from the drop in PUDO's long position.The idea behind HUMANA INC and PUDO Inc 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.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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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