Correlation Between HUMANA and Pimco Fundamental
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By analyzing existing cross correlation between HUMANA INC and Pimco Fundamental Advantage, you can compare the effects of market volatilities on HUMANA and Pimco Fundamental 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 Fundamental. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Pimco Fundamental.
Diversification Opportunities for HUMANA and Pimco Fundamental
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Pimco is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Pimco Fundamental Advantage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Fundamental 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 Fundamental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Fundamental has no effect on the direction of HUMANA i.e., HUMANA and Pimco Fundamental go up and down completely randomly.
Pair Corralation between HUMANA and Pimco Fundamental
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Pimco Fundamental. In addition to that, HUMANA is 1.85 times more volatile than Pimco Fundamental Advantage. It trades about -0.22 of its total potential returns per unit of risk. Pimco Fundamental Advantage is currently generating about -0.07 per unit of volatility. If you would invest 779.00 in Pimco Fundamental Advantage on August 30, 2024 and sell it today you would lose (13.00) from holding Pimco Fundamental Advantage or give up 1.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.35% |
| Values | Daily Returns |
HUMANA INC vs. Pimco Fundamental Advantage
Performance |
| Timeline |
| HUMANA INC |
| Pimco Fundamental |
HUMANA and Pimco Fundamental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Pimco Fundamental
The main advantage of trading using opposite HUMANA and Pimco Fundamental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Pimco Fundamental 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 Fundamental will offset losses from the drop in Pimco Fundamental's long position.The idea behind HUMANA INC and Pimco Fundamental Advantage 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 Fundamental vs. HUMANA INC | Pimco Fundamental vs. Aquagold International | Pimco Fundamental vs. Barloworld Ltd ADR | Pimco Fundamental vs. Morningstar Unconstrained Allocation |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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