Correlation Between HUMANA and Pimco Municipal
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By analyzing existing cross correlation between HUMANA INC and Pimco Municipal Income, you can compare the effects of market volatilities on HUMANA and Pimco Municipal 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 Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Pimco Municipal.
Diversification Opportunities for HUMANA and Pimco Municipal
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Pimco is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Pimco Municipal Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Municipal Income 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 Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Municipal Income has no effect on the direction of HUMANA i.e., HUMANA and Pimco Municipal go up and down completely randomly.
Pair Corralation between HUMANA and Pimco Municipal
Assuming the 90 days trading horizon HUMANA INC is expected to generate 86.23 times more return on investment than Pimco Municipal. However, HUMANA is 86.23 times more volatile than Pimco Municipal Income. It trades about 0.07 of its potential returns per unit of risk. Pimco Municipal Income is currently generating about 0.01 per unit of risk. If you would invest 8,078 in HUMANA INC on August 31, 2024 and sell it today you would lose (383.00) from holding HUMANA INC or give up 4.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.34% |
| Values | Daily Returns |
HUMANA INC vs. Pimco Municipal Income
Performance |
| Timeline |
| HUMANA INC |
| Pimco Municipal Income |
HUMANA and Pimco Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Pimco Municipal
The main advantage of trading using opposite HUMANA and Pimco Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Pimco Municipal 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 Municipal will offset losses from the drop in Pimco Municipal's long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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