Correlation Between HUMANA and Pax Esg
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By analyzing existing cross correlation between HUMANA INC and Pax Esg Beta, you can compare the effects of market volatilities on HUMANA and Pax Esg 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 Pax Esg. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Pax Esg.
Diversification Opportunities for HUMANA and Pax Esg
Very weak diversification
The 3 months correlation between HUMANA and Pax is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Pax Esg Beta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pax Esg Beta 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 Pax Esg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pax Esg Beta has no effect on the direction of HUMANA i.e., HUMANA and Pax Esg go up and down completely randomly.
Pair Corralation between HUMANA and Pax Esg
Assuming the 90 days trading horizon HUMANA INC is expected to generate 75.83 times more return on investment than Pax Esg. However, HUMANA is 75.83 times more volatile than Pax Esg Beta. It trades about 0.05 of its potential returns per unit of risk. Pax Esg Beta is currently generating about 0.04 per unit of risk. If you would invest 7,809 in HUMANA INC on August 29, 2024 and sell it today you would earn a total of 226.00 from holding HUMANA INC or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.29% |
| Values | Daily Returns |
HUMANA INC vs. Pax Esg Beta
Performance |
| Timeline |
| HUMANA INC |
| Pax Esg Beta |
HUMANA and Pax Esg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Pax Esg
The main advantage of trading using opposite HUMANA and Pax Esg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Pax Esg 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 Pax Esg will offset losses from the drop in Pax Esg's long position.The idea behind HUMANA INC and Pax Esg Beta 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.| Pax Esg vs. HUMANA INC | Pax Esg vs. Aquagold International | Pax Esg vs. Barloworld Ltd ADR | Pax Esg 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 CEOs Directory module to screen CEOs from public companies around the world.
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