Correlation Between HUMANA and Pace High
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By analyzing existing cross correlation between HUMANA INC and Pace High Yield, you can compare the effects of market volatilities on HUMANA and Pace High 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 Pace High. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Pace High.
Diversification Opportunities for HUMANA and Pace High
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The 3 months correlation between HUMANA and Pace is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Pace High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pace High Yield 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 Pace High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pace High Yield has no effect on the direction of HUMANA i.e., HUMANA and Pace High go up and down completely randomly.
Pair Corralation between HUMANA and Pace High
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Pace High. In addition to that, HUMANA is 6.07 times more volatile than Pace High Yield. It trades about -0.17 of its total potential returns per unit of risk. Pace High Yield is currently generating about 0.22 per unit of volatility. If you would invest 879.00 in Pace High Yield on August 28, 2024 and sell it today you would earn a total of 15.00 from holding Pace High Yield or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
HUMANA INC vs. Pace High Yield
Performance |
| Timeline |
| HUMANA INC |
| Pace High Yield |
HUMANA and Pace High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Pace High
The main advantage of trading using opposite HUMANA and Pace High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Pace High 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 Pace High will offset losses from the drop in Pace High's long position.| HUMANA vs. Ultra Clean Holdings | HUMANA vs. Dream Homes Development | HUMANA vs. JBG SMITH Properties | HUMANA vs. Allegheny Technologies Incorporated |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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