Correlation Between HUMANA and Pax Large
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By analyzing existing cross correlation between HUMANA INC and Pax Large Cap, you can compare the effects of market volatilities on HUMANA and Pax Large 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 Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Pax Large.
Diversification Opportunities for HUMANA and Pax Large
Excellent diversification
The 3 months correlation between HUMANA and Pax is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Pax Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pax Large Cap 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 Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pax Large Cap has no effect on the direction of HUMANA i.e., HUMANA and Pax Large go up and down completely randomly.
Pair Corralation between HUMANA and Pax Large
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Pax Large. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.31 times less risky than Pax Large. The bond trades about -0.07 of its potential returns per unit of risk. The Pax Large Cap is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,526 in Pax Large Cap on August 28, 2024 and sell it today you would earn a total of 11.00 from holding Pax Large Cap or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Pax Large Cap
Performance |
| Timeline |
| HUMANA INC |
| Pax Large Cap |
HUMANA and Pax Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Pax Large
The main advantage of trading using opposite HUMANA and Pax Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Pax Large 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 Large will offset losses from the drop in Pax Large's long position.| HUMANA vs. Zhihu Inc ADR | HUMANA vs. National CineMedia | HUMANA vs. Comstock Holding Companies | HUMANA vs. PennantPark Investment |
| Pax Large vs. Pax Balanced Fund | Pax Large vs. Pax High Yield | Pax Large vs. Green Century Equity | Pax Large vs. Domini Impact Equity |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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