Correlation Between HUMANA and Putnman Retirement
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By analyzing existing cross correlation between HUMANA INC and Putnman Retirement Ready, you can compare the effects of market volatilities on HUMANA and Putnman Retirement 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 Putnman Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Putnman Retirement.
Diversification Opportunities for HUMANA and Putnman Retirement
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Putnman is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Putnman Retirement Ready in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnman Retirement Ready 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 Putnman Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnman Retirement Ready has no effect on the direction of HUMANA i.e., HUMANA and Putnman Retirement go up and down completely randomly.
Pair Corralation between HUMANA and Putnman Retirement
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Putnman Retirement. In addition to that, HUMANA is 3.58 times more volatile than Putnman Retirement Ready. It trades about -0.19 of its total potential returns per unit of risk. Putnman Retirement Ready is currently generating about 0.21 per unit of volatility. If you would invest 2,592 in Putnman Retirement Ready on September 13, 2024 and sell it today you would earn a total of 36.00 from holding Putnman Retirement Ready or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUMANA INC vs. Putnman Retirement Ready
Performance |
| Timeline |
| HUMANA INC |
| Putnman Retirement Ready |
HUMANA and Putnman Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Putnman Retirement
The main advantage of trading using opposite HUMANA and Putnman Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Putnman Retirement 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 Putnman Retirement will offset losses from the drop in Putnman Retirement's long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
| Putnman Retirement vs. Putnam Equity Income | Putnman Retirement vs. Putnam Tax Exempt | Putnman Retirement vs. Putnam Floating Rate | Putnman Retirement vs. Putnam High Yield |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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