Correlation Between HUMANA and Pace Smallmedium
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By analyzing existing cross correlation between HUMANA INC and Pace Smallmedium Growth, you can compare the effects of market volatilities on HUMANA and Pace Smallmedium 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 Pace Smallmedium. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Pace Smallmedium.
Diversification Opportunities for HUMANA and Pace Smallmedium
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Pace is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Pace Smallmedium Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pace Smallmedium Growth 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 Pace Smallmedium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pace Smallmedium Growth has no effect on the direction of HUMANA i.e., HUMANA and Pace Smallmedium go up and down completely randomly.
Pair Corralation between HUMANA and Pace Smallmedium
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Pace Smallmedium. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.27 times less risky than Pace Smallmedium. The bond trades about -0.16 of its potential returns per unit of risk. The Pace Smallmedium Growth is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,287 in Pace Smallmedium Growth on September 13, 2024 and sell it today you would earn a total of 116.00 from holding Pace Smallmedium Growth or generate 9.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Pace Smallmedium Growth
Performance |
| Timeline |
| HUMANA INC |
| Pace Smallmedium Growth |
HUMANA and Pace Smallmedium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Pace Smallmedium
The main advantage of trading using opposite HUMANA and Pace Smallmedium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Pace Smallmedium 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 Pace Smallmedium will offset losses from the drop in Pace Smallmedium's long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
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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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