Correlation Between HUMANA and Strategic Asset
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By analyzing existing cross correlation between HUMANA INC and Strategic Asset Management, you can compare the effects of market volatilities on HUMANA and Strategic Asset 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 Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Strategic Asset.
Diversification Opportunities for HUMANA and Strategic Asset
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and Strategic is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana 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 Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of HUMANA i.e., HUMANA and Strategic Asset go up and down completely randomly.
Pair Corralation between HUMANA and Strategic Asset
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Strategic Asset. In addition to that, HUMANA is 2.14 times more volatile than Strategic Asset Management. It trades about -0.03 of its total potential returns per unit of risk. Strategic Asset Management is currently generating about 0.12 per unit of volatility. If you would invest 1,152 in Strategic Asset Management on September 1, 2024 and sell it today you would earn a total of 81.00 from holding Strategic Asset Management or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.35% |
| Values | Daily Returns |
HUMANA INC vs. Strategic Asset Management
Performance |
| Timeline |
| HUMANA INC |
| Strategic Asset Mana |
HUMANA and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Strategic Asset
The main advantage of trading using opposite HUMANA and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Strategic Asset vs. Jhancock Disciplined Value | Strategic Asset vs. Dunham Large Cap | Strategic Asset vs. Fidelity Series 1000 | Strategic Asset vs. Aqr Large Cap |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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