Correlation Between HUMANA and Pimco High
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By analyzing existing cross correlation between HUMANA INC and Pimco High Yield, you can compare the effects of market volatilities on HUMANA and Pimco 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 Pimco High. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Pimco High.
Diversification Opportunities for HUMANA and Pimco High
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and PIMCO is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Pimco High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco 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 Pimco High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco High Yield has no effect on the direction of HUMANA i.e., HUMANA and Pimco High go up and down completely randomly.
Pair Corralation between HUMANA and Pimco High
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Pimco High. In addition to that, HUMANA is 5.32 times more volatile than Pimco High Yield. It trades about -0.16 of its total potential returns per unit of risk. Pimco High Yield is currently generating about -0.02 per unit of volatility. If you would invest 925.00 in Pimco High Yield on August 29, 2024 and sell it today you would lose (1.00) from holding Pimco High Yield or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.02% |
| Values | Daily Returns |
HUMANA INC vs. Pimco High Yield
Performance |
| Timeline |
| HUMANA INC |
| Pimco High Yield |
HUMANA and Pimco High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Pimco High
The main advantage of trading using opposite HUMANA and Pimco High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Pimco 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 Pimco High will offset losses from the drop in Pimco High's long position.The idea behind HUMANA INC and Pimco High Yield 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.| Pimco High vs. Prudential High Yield | Pimco High vs. HUMANA INC | Pimco High vs. Aquagold International | Pimco High vs. Barloworld Ltd ADR |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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