Correlation Between HUMANA and Moderate Strategy
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By analyzing existing cross correlation between HUMANA INC and Moderate Strategy Fund, you can compare the effects of market volatilities on HUMANA and Moderate Strategy 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 Moderate Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Moderate Strategy.
Diversification Opportunities for HUMANA and Moderate Strategy
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Moderate is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Moderate Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderate 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 Moderate Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderate Strategy has no effect on the direction of HUMANA i.e., HUMANA and Moderate Strategy go up and down completely randomly.
Pair Corralation between HUMANA and Moderate Strategy
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Moderate Strategy. In addition to that, HUMANA is 1.67 times more volatile than Moderate Strategy Fund. It trades about -0.07 of its total potential returns per unit of risk. Moderate Strategy Fund is currently generating about 0.12 per unit of volatility. If you would invest 965.00 in Moderate Strategy Fund on August 28, 2024 and sell it today you would earn a total of 10.00 from holding Moderate Strategy Fund or generate 1.04% 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. Moderate Strategy Fund
Performance |
| Timeline |
| HUMANA INC |
| Moderate Strategy |
HUMANA and Moderate Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Moderate Strategy
The main advantage of trading using opposite HUMANA and Moderate Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Moderate Strategy 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 Moderate Strategy will offset losses from the drop in Moderate Strategy's long position.| HUMANA vs. Zhihu Inc ADR | HUMANA vs. National CineMedia | HUMANA vs. Comstock Holding Companies | HUMANA vs. PennantPark Investment |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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