Correlation Between HUMANA and Commodities Strategy
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By analyzing existing cross correlation between HUMANA INC and Commodities Strategy Fund, you can compare the effects of market volatilities on HUMANA and Commodities 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 Commodities Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Commodities Strategy.
Diversification Opportunities for HUMANA and Commodities Strategy
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and Commodities is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Commodities Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commodities 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 Commodities Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commodities Strategy has no effect on the direction of HUMANA i.e., HUMANA and Commodities Strategy go up and down completely randomly.
Pair Corralation between HUMANA and Commodities Strategy
Assuming the 90 days trading horizon HUMANA INC is expected to generate 3.09 times more return on investment than Commodities Strategy. However, HUMANA is 3.09 times more volatile than Commodities Strategy Fund. It trades about 0.07 of its potential returns per unit of risk. Commodities Strategy Fund is currently generating about 0.06 per unit of risk. If you would invest 8,122 in HUMANA INC on November 27, 2024 and sell it today you would lose (223.00) from holding HUMANA INC or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.75% |
| Values | Daily Returns |
HUMANA INC vs. Commodities Strategy Fund
Performance |
| Timeline |
| HUMANA INC |
| Commodities Strategy |
HUMANA and Commodities Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Commodities Strategy
The main advantage of trading using opposite HUMANA and Commodities Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Commodities 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 Commodities Strategy will offset losses from the drop in Commodities Strategy's long position.| HUMANA vs. Amkor Technology | HUMANA vs. Primo Brands | HUMANA vs. The Coca Cola | HUMANA vs. Brandywine Realty Trust |
| Commodities Strategy vs. Basic Materials Fund | Commodities Strategy vs. Energy Services Fund | Commodities Strategy vs. Energy Fund Investor | Commodities Strategy vs. Real Estate 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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