Correlation Between HUMANA and Equity Growth
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By analyzing existing cross correlation between HUMANA INC and Equity Growth Strategy, you can compare the effects of market volatilities on HUMANA and Equity Growth 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 Equity Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Equity Growth.
Diversification Opportunities for HUMANA and Equity Growth
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Equity is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Equity Growth Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity Growth Strategy 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 Equity Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity Growth Strategy has no effect on the direction of HUMANA i.e., HUMANA and Equity Growth go up and down completely randomly.
Pair Corralation between HUMANA and Equity Growth
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Equity Growth. In addition to that, HUMANA is 2.16 times more volatile than Equity Growth Strategy. It trades about -0.21 of its total potential returns per unit of risk. Equity Growth Strategy is currently generating about 0.33 per unit of volatility. If you would invest 1,582 in Equity Growth Strategy on September 1, 2024 and sell it today you would earn a total of 62.00 from holding Equity Growth Strategy or generate 3.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Equity Growth Strategy
Performance |
| Timeline |
| HUMANA INC |
| Equity Growth Strategy |
HUMANA and Equity Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Equity Growth
The main advantage of trading using opposite HUMANA and Equity Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Equity Growth 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 Equity Growth will offset losses from the drop in Equity Growth's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Equity Growth vs. International Developed Markets | Equity Growth vs. Global Real Estate | Equity Growth vs. Global Real Estate | Equity Growth vs. Global Real Estate |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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