Correlation Between HUMANA and Short Term
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By analyzing existing cross correlation between HUMANA INC and Short Term Fund R, you can compare the effects of market volatilities on HUMANA and Short Term 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 Short Term. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Short Term.
Diversification Opportunities for HUMANA and Short Term
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Short is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Short Term Fund R in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Term Fund 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 Short Term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Term Fund has no effect on the direction of HUMANA i.e., HUMANA and Short Term go up and down completely randomly.
Pair Corralation between HUMANA and Short Term
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Short Term. In addition to that, HUMANA is 7.74 times more volatile than Short Term Fund R. It trades about -0.04 of its total potential returns per unit of risk. Short Term Fund R is currently generating about 0.2 per unit of volatility. If you would invest 945.00 in Short Term Fund R on September 1, 2024 and sell it today you would earn a total of 21.00 from holding Short Term Fund R or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
HUMANA INC vs. Short Term Fund R
Performance |
| Timeline |
| HUMANA INC |
| Short Term Fund |
HUMANA and Short Term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Short Term
The main advantage of trading using opposite HUMANA and Short Term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Short Term 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 Short Term will offset losses from the drop in Short Term's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Short Term vs. T Rowe Price | Short Term vs. Kinetics Global Fund | Short Term vs. Pimco Global Multi Asset | Short Term vs. Mirova Global Green |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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