Correlation Between HUMANA and Pace Large
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By analyzing existing cross correlation between HUMANA INC and Pace Large Growth, you can compare the effects of market volatilities on HUMANA and Pace Large 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 Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Pace Large.
Diversification Opportunities for HUMANA and Pace Large
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Pace is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Pace Large Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pace Large Growth 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 Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pace Large Growth has no effect on the direction of HUMANA i.e., HUMANA and Pace Large go up and down completely randomly.
Pair Corralation between HUMANA and Pace Large
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Pace Large. In addition to that, HUMANA is 1.03 times more volatile than Pace Large Growth. It trades about -0.25 of its total potential returns per unit of risk. Pace Large Growth is currently generating about 0.16 per unit of volatility. If you would invest 1,693 in Pace Large Growth on August 28, 2024 and sell it today you would earn a total of 57.00 from holding Pace Large Growth or generate 3.37% 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. Pace Large Growth
Performance |
| Timeline |
| HUMANA INC |
| Pace Large Growth |
HUMANA and Pace Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Pace Large
The main advantage of trading using opposite HUMANA and Pace Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Pace Large 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 Large will offset losses from the drop in Pace Large'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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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