Correlation Between HUMANA and Rayliant Quantamental
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By analyzing existing cross correlation between HUMANA INC and Rayliant Quantamental Emerging, you can compare the effects of market volatilities on HUMANA and Rayliant Quantamental 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 Rayliant Quantamental. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Rayliant Quantamental.
Diversification Opportunities for HUMANA and Rayliant Quantamental
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and Rayliant is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Rayliant Quantamental Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rayliant Quantamental 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 Rayliant Quantamental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rayliant Quantamental has no effect on the direction of HUMANA i.e., HUMANA and Rayliant Quantamental go up and down completely randomly.
Pair Corralation between HUMANA and Rayliant Quantamental
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Rayliant Quantamental. In addition to that, HUMANA is 1.54 times more volatile than Rayliant Quantamental Emerging. It trades about -0.09 of its total potential returns per unit of risk. Rayliant Quantamental Emerging is currently generating about -0.04 per unit of volatility. If you would invest 2,339 in Rayliant Quantamental Emerging on November 28, 2024 and sell it today you would lose (13.00) from holding Rayliant Quantamental Emerging or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Rayliant Quantamental Emerging
Performance |
| Timeline |
| HUMANA INC |
| Rayliant Quantamental |
HUMANA and Rayliant Quantamental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Rayliant Quantamental
The main advantage of trading using opposite HUMANA and Rayliant Quantamental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Rayliant Quantamental 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 Rayliant Quantamental will offset losses from the drop in Rayliant Quantamental's long position.| HUMANA vs. Iridium Communications | HUMANA vs. Barrick Gold Corp | HUMANA vs. Sun Peak Metals | HUMANA vs. Pinterest |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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