Correlation Between HUMANA and Prudential Jennison
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Prudential Jennison Financial, you can compare the effects of market volatilities on HUMANA and Prudential Jennison 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 Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Prudential Jennison.
Diversification Opportunities for HUMANA and Prudential Jennison
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Prudential is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Prudential Jennison Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Jennison 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 Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Jennison has no effect on the direction of HUMANA i.e., HUMANA and Prudential Jennison go up and down completely randomly.
Pair Corralation between HUMANA and Prudential Jennison
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Prudential Jennison. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 2.51 times less risky than Prudential Jennison. The bond trades about -0.07 of its potential returns per unit of risk. The Prudential Jennison Financial is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,528 in Prudential Jennison Financial on August 29, 2024 and sell it today you would earn a total of 226.00 from holding Prudential Jennison Financial or generate 8.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
HUMANA INC vs. Prudential Jennison Financial
Performance |
| Timeline |
| HUMANA INC |
| Prudential Jennison |
HUMANA and Prudential Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Prudential Jennison
The main advantage of trading using opposite HUMANA and Prudential Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Prudential Jennison 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 Jennison will offset losses from the drop in Prudential Jennison's long position.The idea behind HUMANA INC and Prudential Jennison Financial 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 Jennison vs. Vanguard Financials Index | Prudential Jennison vs. T Rowe Price | Prudential Jennison vs. Davis Financial Fund | Prudential Jennison vs. HUMANA INC |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |