Correlation Between HUMANA and Putnam Growth
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By analyzing existing cross correlation between HUMANA INC and Putnam Growth Opportunities, you can compare the effects of market volatilities on HUMANA and Putnam Growth 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 Putnam Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Putnam Growth.
Diversification Opportunities for HUMANA and Putnam Growth
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Putnam is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Putnam Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Growth Opport 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 Putnam Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Growth Opport has no effect on the direction of HUMANA i.e., HUMANA and Putnam Growth go up and down completely randomly.
Pair Corralation between HUMANA and Putnam Growth
Assuming the 90 days trading horizon HUMANA is expected to generate 13.85 times less return on investment than Putnam Growth. But when comparing it to its historical volatility, HUMANA INC is 1.73 times less risky than Putnam Growth. It trades about 0.02 of its potential returns per unit of risk. Putnam Growth Opportunities is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,968 in Putnam Growth Opportunities on September 1, 2024 and sell it today you would earn a total of 2,191 from holding Putnam Growth Opportunities or generate 44.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.41% |
| Values | Daily Returns |
HUMANA INC vs. Putnam Growth Opportunities
Performance |
| Timeline |
| HUMANA INC |
| Putnam Growth Opport |
HUMANA and Putnam Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Putnam Growth
The main advantage of trading using opposite HUMANA and Putnam Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Putnam Growth 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 Putnam Growth will offset losses from the drop in Putnam Growth's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Putnam Growth vs. Putnam Equity Income | Putnam Growth vs. Putnam Multi Cap Growth | Putnam Growth vs. Putnam Global Health | Putnam Growth vs. Putnam International Equity |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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