Correlation Between HUMANA and Federated Hermes
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By analyzing existing cross correlation between HUMANA INC and Federated Hermes Mdt, you can compare the effects of market volatilities on HUMANA and Federated Hermes 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 Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Federated Hermes.
Diversification Opportunities for HUMANA and Federated Hermes
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Federated is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Federated Hermes Mdt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Hermes Mdt 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 Federated Hermes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Hermes Mdt has no effect on the direction of HUMANA i.e., HUMANA and Federated Hermes go up and down completely randomly.
Pair Corralation between HUMANA and Federated Hermes
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Federated Hermes. In addition to that, HUMANA is 2.54 times more volatile than Federated Hermes Mdt. It trades about -0.19 of its total potential returns per unit of risk. Federated Hermes Mdt is currently generating about -0.26 per unit of volatility. If you would invest 2,059 in Federated Hermes Mdt on September 13, 2024 and sell it today you would lose (50.00) from holding Federated Hermes Mdt or give up 2.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUMANA INC vs. Federated Hermes Mdt
Performance |
| Timeline |
| HUMANA INC |
| Federated Hermes Mdt |
HUMANA and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Federated Hermes
The main advantage of trading using opposite HUMANA and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Federated Hermes 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 Federated Hermes will offset losses from the drop in Federated Hermes' long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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