Correlation Between HUMANA and Small-midcap Dividend
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By analyzing existing cross correlation between HUMANA INC and Small Midcap Dividend Income, you can compare the effects of market volatilities on HUMANA and Small-midcap Dividend 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 Small-midcap Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Small-midcap Dividend.
Diversification Opportunities for HUMANA and Small-midcap Dividend
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Small-midcap is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Small Midcap Dividend Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Midcap Dividend 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 Small-midcap Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Midcap Dividend has no effect on the direction of HUMANA i.e., HUMANA and Small-midcap Dividend go up and down completely randomly.
Pair Corralation between HUMANA and Small-midcap Dividend
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Small-midcap Dividend. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.84 times less risky than Small-midcap Dividend. The bond trades about -0.06 of its potential returns per unit of risk. The Small Midcap Dividend Income is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,953 in Small Midcap Dividend Income on August 30, 2024 and sell it today you would earn a total of 134.00 from holding Small Midcap Dividend Income or generate 6.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
HUMANA INC vs. Small Midcap Dividend Income
Performance |
| Timeline |
| HUMANA INC |
| Small Midcap Dividend |
HUMANA and Small-midcap Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Small-midcap Dividend
The main advantage of trading using opposite HUMANA and Small-midcap Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Small-midcap Dividend 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 Small-midcap Dividend will offset losses from the drop in Small-midcap Dividend's long position.| HUMANA vs. Brandywine Realty Trust | HUMANA vs. Celsius Holdings | HUMANA vs. Uber Technologies | HUMANA vs. PepsiCo |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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