Correlation Between HUMANA and Global Real
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By analyzing existing cross correlation between HUMANA INC and Global Real Estate, you can compare the effects of market volatilities on HUMANA and Global Real 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 Global Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Global Real.
Diversification Opportunities for HUMANA and Global Real
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Global is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Global Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Real Estate 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 Global Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Real Estate has no effect on the direction of HUMANA i.e., HUMANA and Global Real go up and down completely randomly.
Pair Corralation between HUMANA and Global Real
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Global Real. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.22 times less risky than Global Real. The bond trades about -0.07 of its potential returns per unit of risk. The Global Real Estate is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,001 in Global Real Estate on August 29, 2024 and sell it today you would lose (4.00) from holding Global Real Estate or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
HUMANA INC vs. Global Real Estate
Performance |
| Timeline |
| HUMANA INC |
| Global Real Estate |
HUMANA and Global Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Global Real
The main advantage of trading using opposite HUMANA and Global Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Global Real 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 Global Real will offset losses from the drop in Global Real's long position.The idea behind HUMANA INC and Global Real Estate 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.| Global Real vs. HUMANA INC | Global Real vs. Aquagold International | Global Real vs. Barloworld Ltd ADR | Global Real vs. Morningstar Unconstrained Allocation |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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