Correlation Between HUMANA and Pimco Stocksplus
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By analyzing existing cross correlation between HUMANA INC and Pimco Stocksplus Short, you can compare the effects of market volatilities on HUMANA and Pimco Stocksplus 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 Stocksplus. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Pimco Stocksplus.
Diversification Opportunities for HUMANA and Pimco Stocksplus
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Pimco is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Pimco Stocksplus Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Stocksplus Short 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 Stocksplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Stocksplus Short has no effect on the direction of HUMANA i.e., HUMANA and Pimco Stocksplus go up and down completely randomly.
Pair Corralation between HUMANA and Pimco Stocksplus
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.81 times more return on investment than Pimco Stocksplus. However, HUMANA INC is 1.24 times less risky than Pimco Stocksplus. It trades about -0.04 of its potential returns per unit of risk. Pimco Stocksplus Short is currently generating about -0.08 per unit of risk. If you would invest 8,172 in HUMANA INC on September 12, 2024 and sell it today you would lose (477.00) from holding HUMANA INC or give up 5.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.57% |
| Values | Daily Returns |
HUMANA INC vs. Pimco Stocksplus Short
Performance |
| Timeline |
| HUMANA INC |
| Pimco Stocksplus Short |
HUMANA and Pimco Stocksplus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Pimco Stocksplus
The main advantage of trading using opposite HUMANA and Pimco Stocksplus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Pimco Stocksplus 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 Stocksplus will offset losses from the drop in Pimco Stocksplus' long position.The idea behind HUMANA INC and Pimco Stocksplus Short pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Pimco Stocksplus vs. Grizzly Short Fund | Pimco Stocksplus vs. Inverse Sp 500 | Pimco Stocksplus vs. HUMANA INC | Pimco Stocksplus vs. Barloworld Ltd ADR |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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