Correlation Between HUMANA and Pimco California
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By analyzing existing cross correlation between HUMANA INC and Pimco California Municipal, you can compare the effects of market volatilities on HUMANA and Pimco California 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 California. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Pimco California.
Diversification Opportunities for HUMANA and Pimco California
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUMANA and Pimco is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Pimco California Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco California Mun 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 California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco California Mun has no effect on the direction of HUMANA i.e., HUMANA and Pimco California go up and down completely randomly.
Pair Corralation between HUMANA and Pimco California
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Pimco California. In addition to that, HUMANA is 1.84 times more volatile than Pimco California Municipal. It trades about -0.21 of its total potential returns per unit of risk. Pimco California Municipal is currently generating about -0.07 per unit of volatility. If you would invest 724.00 in Pimco California Municipal on August 31, 2024 and sell it today you would lose (7.00) from holding Pimco California Municipal or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Pimco California Municipal
Performance |
| Timeline |
| HUMANA INC |
| Pimco California Mun |
HUMANA and Pimco California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Pimco California
The main advantage of trading using opposite HUMANA and Pimco California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Pimco California 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 California will offset losses from the drop in Pimco California's long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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