Correlation Between HUMANA and Royce Smaller
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By analyzing existing cross correlation between HUMANA INC and Royce Smaller Companies Growth, you can compare the effects of market volatilities on HUMANA and Royce Smaller 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 Royce Smaller. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Royce Smaller.
Diversification Opportunities for HUMANA and Royce Smaller
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Royce is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Royce Smaller Companies Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Royce Smaller Companies 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 Royce Smaller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Royce Smaller Companies has no effect on the direction of HUMANA i.e., HUMANA and Royce Smaller go up and down completely randomly.
Pair Corralation between HUMANA and Royce Smaller
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Royce Smaller. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.07 times less risky than Royce Smaller. The bond trades about -0.19 of its potential returns per unit of risk. The Royce Smaller Companies Growth is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 832.00 in Royce Smaller Companies Growth on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Royce Smaller Companies Growth or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUMANA INC vs. Royce Smaller Companies Growth
Performance |
| Timeline |
| HUMANA INC |
| Royce Smaller Companies |
HUMANA and Royce Smaller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Royce Smaller
The main advantage of trading using opposite HUMANA and Royce Smaller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Royce Smaller 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 Royce Smaller will offset losses from the drop in Royce Smaller's long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
| Royce Smaller vs. Royce Small Cap Value | Royce Smaller vs. Marsico 21st Century | Royce Smaller vs. Kinetics Paradigm Fund | Royce Smaller vs. Hodges Fund Retail |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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