Correlation Between HUMANA and Aqr Managed
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By analyzing existing cross correlation between HUMANA INC and Aqr Managed Futures, you can compare the effects of market volatilities on HUMANA and Aqr Managed 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 Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Aqr Managed.
Diversification Opportunities for HUMANA and Aqr Managed
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Aqr is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Aqr Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Managed Futures 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 Aqr Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Managed Futures has no effect on the direction of HUMANA i.e., HUMANA and Aqr Managed go up and down completely randomly.
Pair Corralation between HUMANA and Aqr Managed
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Aqr Managed. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.41 times less risky than Aqr Managed. The bond trades about -0.07 of its potential returns per unit of risk. The Aqr Managed Futures is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 809.00 in Aqr Managed Futures on August 29, 2024 and sell it today you would earn a total of 9.00 from holding Aqr Managed Futures or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Aqr Managed Futures
Performance |
| Timeline |
| HUMANA INC |
| Aqr Managed Futures |
HUMANA and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Aqr Managed
The main advantage of trading using opposite HUMANA and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Aqr Managed 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 Aqr Managed will offset losses from the drop in Aqr Managed's long position.The idea behind HUMANA INC and Aqr Managed Futures 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.| Aqr Managed vs. Pimco Trends Managed | Aqr Managed vs. Pimco Trends Managed | Aqr Managed vs. HUMANA INC | Aqr Managed vs. Aquagold International |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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