Correlation Between HUMANA and Hartford Multifactor
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By analyzing existing cross correlation between HUMANA INC and Hartford Multifactor Emerging, you can compare the effects of market volatilities on HUMANA and Hartford Multifactor 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 Hartford Multifactor. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Hartford Multifactor.
Diversification Opportunities for HUMANA and Hartford Multifactor
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and Hartford is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Hartford Multifactor Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Multifactor 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 Hartford Multifactor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Multifactor has no effect on the direction of HUMANA i.e., HUMANA and Hartford Multifactor go up and down completely randomly.
Pair Corralation between HUMANA and Hartford Multifactor
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.87 times more return on investment than Hartford Multifactor. However, HUMANA INC is 1.15 times less risky than Hartford Multifactor. It trades about -0.07 of its potential returns per unit of risk. Hartford Multifactor Emerging is currently generating about -0.26 per unit of risk. If you would invest 8,111 in HUMANA INC on August 29, 2024 and sell it today you would lose (76.00) from holding HUMANA INC or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.96% |
| Values | Daily Returns |
HUMANA INC vs. Hartford Multifactor Emerging
Performance |
| Timeline |
| HUMANA INC |
| Hartford Multifactor |
HUMANA and Hartford Multifactor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Hartford Multifactor
The main advantage of trading using opposite HUMANA and Hartford Multifactor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Hartford Multifactor 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 Hartford Multifactor will offset losses from the drop in Hartford Multifactor's long position.The idea behind HUMANA INC and Hartford Multifactor Emerging 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.| Hartford Multifactor vs. ABIVAX Socit Anonyme | Hartford Multifactor vs. HUMANA INC | Hartford Multifactor vs. SCOR PK | Hartford Multifactor 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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