Correlation Between HUMANA and Versatile Bond
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By analyzing existing cross correlation between HUMANA INC and Versatile Bond Portfolio, you can compare the effects of market volatilities on HUMANA and Versatile Bond 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 Versatile Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Versatile Bond.
Diversification Opportunities for HUMANA and Versatile Bond
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUMANA and Versatile is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Versatile Bond Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Versatile Bond Portfolio 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 Versatile Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Versatile Bond Portfolio has no effect on the direction of HUMANA i.e., HUMANA and Versatile Bond go up and down completely randomly.
Pair Corralation between HUMANA and Versatile Bond
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Versatile Bond. In addition to that, HUMANA is 9.39 times more volatile than Versatile Bond Portfolio. It trades about -0.09 of its total potential returns per unit of risk. Versatile Bond Portfolio is currently generating about 0.05 per unit of volatility. If you would invest 6,444 in Versatile Bond Portfolio on November 27, 2024 and sell it today you would earn a total of 6.00 from holding Versatile Bond Portfolio or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Versatile Bond Portfolio
Performance |
| Timeline |
| HUMANA INC |
| Versatile Bond Portfolio |
HUMANA and Versatile Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Versatile Bond
The main advantage of trading using opposite HUMANA and Versatile Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Versatile Bond 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 Versatile Bond will offset losses from the drop in Versatile Bond's long position.| HUMANA vs. Amkor Technology | HUMANA vs. Primo Brands | HUMANA vs. The Coca Cola | HUMANA vs. Brandywine Realty Trust |
| Versatile Bond vs. Short Term Treasury Portfolio | Versatile Bond vs. Aggressive Growth Portfolio | Versatile Bond vs. Permanent Portfolio Class | Versatile Bond vs. Thompson Bond Fund |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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