Correlation Between HUMANA and Government Long
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Government Long Bond, you can compare the effects of market volatilities on HUMANA and Government Long 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 Government Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Government Long.
Diversification Opportunities for HUMANA and Government Long
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUMANA and Government is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Government Long Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Government Long Bond 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 Government Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Government Long Bond has no effect on the direction of HUMANA i.e., HUMANA and Government Long go up and down completely randomly.
Pair Corralation between HUMANA and Government Long
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Government Long. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.13 times less risky than Government Long. The bond trades about -0.21 of its potential returns per unit of risk. The Government Long Bond is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,234 in Government Long Bond on August 31, 2024 and sell it today you would earn a total of 26.00 from holding Government Long Bond or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Government Long Bond
Performance |
| Timeline |
| HUMANA INC |
| Government Long Bond |
HUMANA and Government Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Government Long
The main advantage of trading using opposite HUMANA and Government Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Government Long 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 Government Long will offset losses from the drop in Government Long's long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
| Government Long vs. Us Government Plus | Government Long vs. HUMANA INC | Government Long vs. Aquagold International | Government Long vs. Barloworld Ltd ADR |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |