Correlation Between HUMANA and Principal Lifetime
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By analyzing existing cross correlation between HUMANA INC and Principal Lifetime Hybrid, you can compare the effects of market volatilities on HUMANA and Principal Lifetime 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 Principal Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Principal Lifetime.
Diversification Opportunities for HUMANA and Principal Lifetime
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Principal is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Principal Lifetime Hybrid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Principal Lifetime Hybrid 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 Principal Lifetime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Principal Lifetime Hybrid has no effect on the direction of HUMANA i.e., HUMANA and Principal Lifetime go up and down completely randomly.
Pair Corralation between HUMANA and Principal Lifetime
Assuming the 90 days trading horizon HUMANA is expected to generate 33.16 times less return on investment than Principal Lifetime. In addition to that, HUMANA is 1.09 times more volatile than Principal Lifetime Hybrid. It trades about 0.0 of its total potential returns per unit of risk. Principal Lifetime Hybrid is currently generating about 0.11 per unit of volatility. If you would invest 1,208 in Principal Lifetime Hybrid on September 12, 2024 and sell it today you would earn a total of 272.00 from holding Principal Lifetime Hybrid or generate 22.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.58% |
| Values | Daily Returns |
HUMANA INC vs. Principal Lifetime Hybrid
Performance |
| Timeline |
| HUMANA INC |
| Principal Lifetime Hybrid |
HUMANA and Principal Lifetime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Principal Lifetime
The main advantage of trading using opposite HUMANA and Principal Lifetime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Principal Lifetime 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 Principal Lifetime will offset losses from the drop in Principal Lifetime's long position.The idea behind HUMANA INC and Principal Lifetime Hybrid 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.| Principal Lifetime vs. Fidelity Freedom 2035 | Principal Lifetime vs. HUMANA INC | Principal Lifetime vs. Barloworld Ltd ADR | Principal Lifetime 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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