Correlation Between HUMANA and Pimco Income
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By analyzing existing cross correlation between HUMANA INC and Pimco Income Fund, you can compare the effects of market volatilities on HUMANA and Pimco Income 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 Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Pimco Income.
Diversification Opportunities for HUMANA and Pimco Income
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Pimco is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Pimco Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco 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 Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Income has no effect on the direction of HUMANA i.e., HUMANA and Pimco Income go up and down completely randomly.
Pair Corralation between HUMANA and Pimco Income
Assuming the 90 days trading horizon HUMANA INC is expected to generate 267.33 times more return on investment than Pimco Income. However, HUMANA is 267.33 times more volatile than Pimco Income Fund. It trades about 0.07 of its potential returns per unit of risk. Pimco Income Fund is currently generating about 0.1 per unit of risk. If you would invest 7,664 in HUMANA INC on November 27, 2024 and sell it today you would earn a total of 235.00 from holding HUMANA INC or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.33% |
| Values | Daily Returns |
HUMANA INC vs. Pimco Income Fund
Performance |
| Timeline |
| HUMANA INC |
| Pimco Income |
HUMANA and Pimco Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Pimco Income
The main advantage of trading using opposite HUMANA and Pimco Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Pimco Income 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 Income will offset losses from the drop in Pimco Income's long position.| HUMANA vs. Amkor Technology | HUMANA vs. Primo Brands | HUMANA vs. The Coca Cola | HUMANA vs. Brandywine Realty Trust |
| Pimco Income vs. Voya Target Retirement | Pimco Income vs. Blackrock Moderate Prepared | Pimco Income vs. Great West Moderately Servative | Pimco Income vs. Tiaa Cref Lifestyle Moderate |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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