Correlation Between HUMANA and Realestaterealreturn
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By analyzing existing cross correlation between HUMANA INC and Realestaterealreturn Strategy Fund, you can compare the effects of market volatilities on HUMANA and Realestaterealreturn 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 Realestaterealreturn. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Realestaterealreturn.
Diversification Opportunities for HUMANA and Realestaterealreturn
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HUMANA and Realestaterealreturn is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Realestaterealreturn Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Realestaterealreturn 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 Realestaterealreturn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Realestaterealreturn has no effect on the direction of HUMANA i.e., HUMANA and Realestaterealreturn go up and down completely randomly.
Pair Corralation between HUMANA and Realestaterealreturn
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Realestaterealreturn. In addition to that, HUMANA is 1.21 times more volatile than Realestaterealreturn Strategy Fund. It trades about -0.09 of its total potential returns per unit of risk. Realestaterealreturn Strategy Fund is currently generating about 0.15 per unit of volatility. If you would invest 2,694 in Realestaterealreturn Strategy Fund on November 28, 2024 and sell it today you would earn a total of 63.00 from holding Realestaterealreturn Strategy Fund or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Realestaterealreturn Strategy
Performance |
| Timeline |
| HUMANA INC |
| Realestaterealreturn |
HUMANA and Realestaterealreturn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Realestaterealreturn
The main advantage of trading using opposite HUMANA and Realestaterealreturn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Realestaterealreturn 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 Realestaterealreturn will offset losses from the drop in Realestaterealreturn's long position.| HUMANA vs. Iridium Communications | HUMANA vs. Barrick Gold Corp | HUMANA vs. Sun Peak Metals | HUMANA vs. Pinterest |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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