Correlation Between HUMANA and Polar Capital
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By analyzing existing cross correlation between HUMANA INC and Polar Capital Emerging, you can compare the effects of market volatilities on HUMANA and Polar Capital 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 Polar Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Polar Capital.
Diversification Opportunities for HUMANA and Polar Capital
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Polar is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Polar Capital Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polar Capital Emerging 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 Polar Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polar Capital Emerging has no effect on the direction of HUMANA i.e., HUMANA and Polar Capital go up and down completely randomly.
Pair Corralation between HUMANA and Polar Capital
Assuming the 90 days trading horizon HUMANA INC is expected to generate 83.51 times more return on investment than Polar Capital. However, HUMANA is 83.51 times more volatile than Polar Capital Emerging. It trades about 0.07 of its potential returns per unit of risk. Polar Capital Emerging is currently generating about 0.03 per unit of risk. If you would invest 8,129 in HUMANA INC on September 4, 2024 and sell it today you would lose (94.00) from holding HUMANA INC or give up 1.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.09% |
| Values | Daily Returns |
HUMANA INC vs. Polar Capital Emerging
Performance |
| Timeline |
| HUMANA INC |
| Polar Capital Emerging |
HUMANA and Polar Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Polar Capital
The main advantage of trading using opposite HUMANA and Polar Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Polar Capital 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 Polar Capital will offset losses from the drop in Polar Capital's long position.| HUMANA vs. Usio Inc | HUMANA vs. MACOM Technology Solutions | HUMANA vs. Amkor Technology | HUMANA vs. Analog Devices |
| Polar Capital vs. Franklin Mutual Global | Polar Capital vs. Templeton Growth Fund | Polar Capital vs. Franklin Real Estate | Polar Capital vs. HUMANA INC |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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