Correlation Between HUMANA and Flaherty Crumrine
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By analyzing existing cross correlation between HUMANA INC and Flaherty Crumrine Preferredome, you can compare the effects of market volatilities on HUMANA and Flaherty Crumrine 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 Flaherty Crumrine. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Flaherty Crumrine.
Diversification Opportunities for HUMANA and Flaherty Crumrine
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and Flaherty is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Flaherty Crumrine Preferredome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flaherty Crumrine 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 Flaherty Crumrine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flaherty Crumrine has no effect on the direction of HUMANA i.e., HUMANA and Flaherty Crumrine go up and down completely randomly.
Pair Corralation between HUMANA and Flaherty Crumrine
Assuming the 90 days trading horizon HUMANA INC is expected to generate 69.44 times more return on investment than Flaherty Crumrine. However, HUMANA is 69.44 times more volatile than Flaherty Crumrine Preferredome. It trades about 0.07 of its potential returns per unit of risk. Flaherty Crumrine Preferredome is currently generating about 0.03 per unit of risk. If you would invest 8,012 in HUMANA INC on September 2, 2024 and sell it today you would lose (317.00) from holding HUMANA INC or give up 3.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.95% |
| Values | Daily Returns |
HUMANA INC vs. Flaherty Crumrine Preferredome
Performance |
| Timeline |
| HUMANA INC |
| Flaherty Crumrine |
HUMANA and Flaherty Crumrine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Flaherty Crumrine
The main advantage of trading using opposite HUMANA and Flaherty Crumrine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Flaherty Crumrine 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 Flaherty Crumrine will offset losses from the drop in Flaherty Crumrine's long position.The idea behind HUMANA INC and Flaherty Crumrine Preferredome 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.| Flaherty Crumrine vs. Flaherty Crumrine Preferred | Flaherty Crumrine vs. Flaherty Crumrine Preferred | Flaherty Crumrine vs. Flaherty Crumrine Total | Flaherty Crumrine vs. Putnam Master Intermediate |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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