Correlation Between HUMANA and Energy Fund
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By analyzing existing cross correlation between HUMANA INC and Energy Fund Investor, you can compare the effects of market volatilities on HUMANA and Energy Fund 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 Energy Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Energy Fund.
Diversification Opportunities for HUMANA and Energy Fund
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Energy is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Energy Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Fund Investor 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 Energy Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Fund Investor has no effect on the direction of HUMANA i.e., HUMANA and Energy Fund go up and down completely randomly.
Pair Corralation between HUMANA and Energy Fund
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Energy Fund. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.75 times less risky than Energy Fund. The bond trades about -0.03 of its potential returns per unit of risk. The Energy Fund Investor is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 26,140 in Energy Fund Investor on September 1, 2024 and sell it today you would earn a total of 1,906 from holding Energy Fund Investor or generate 7.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.35% |
| Values | Daily Returns |
HUMANA INC vs. Energy Fund Investor
Performance |
| Timeline |
| HUMANA INC |
| Energy Fund Investor |
HUMANA and Energy Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Energy Fund
The main advantage of trading using opposite HUMANA and Energy Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Energy Fund 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 Energy Fund will offset losses from the drop in Energy Fund's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Energy Fund vs. Basic Materials Fund | Energy Fund vs. Electronics Fund Investor | Energy Fund vs. Health Care Fund | Energy Fund vs. Precious Metals Fund |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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