Correlation Between HUMANA and Putnam Growth
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By analyzing existing cross correlation between HUMANA INC and Putnam Growth Opportunities, you can compare the effects of market volatilities on HUMANA and Putnam Growth 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 Putnam Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Putnam Growth.
Diversification Opportunities for HUMANA and Putnam Growth
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Putnam is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Putnam Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Growth Opport 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 Putnam Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Growth Opport has no effect on the direction of HUMANA i.e., HUMANA and Putnam Growth go up and down completely randomly.
Pair Corralation between HUMANA and Putnam Growth
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Putnam Growth. In addition to that, HUMANA is 1.26 times more volatile than Putnam Growth Opportunities. It trades about -0.18 of its total potential returns per unit of risk. Putnam Growth Opportunities is currently generating about 0.26 per unit of volatility. If you would invest 7,317 in Putnam Growth Opportunities on September 2, 2024 and sell it today you would earn a total of 379.00 from holding Putnam Growth Opportunities or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Putnam Growth Opportunities
Performance |
| Timeline |
| HUMANA INC |
| Putnam Growth Opport |
HUMANA and Putnam Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Putnam Growth
The main advantage of trading using opposite HUMANA and Putnam Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Putnam Growth 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 Putnam Growth will offset losses from the drop in Putnam Growth's long position.The idea behind HUMANA INC and Putnam Growth Opportunities 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.| Putnam Growth vs. Putnam Equity Income | Putnam Growth vs. Putnam Tax Exempt | Putnam Growth vs. Putnam Floating Rate | Putnam Growth vs. Putnam High Yield |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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