Correlation Between HUMANA and Moderately Aggressive
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By analyzing existing cross correlation between HUMANA INC and Moderately Aggressive Balanced, you can compare the effects of market volatilities on HUMANA and Moderately Aggressive 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 Moderately Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Moderately Aggressive.
Diversification Opportunities for HUMANA and Moderately Aggressive
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Moderately is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Moderately Aggressive Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderately Aggressive 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 Moderately Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderately Aggressive has no effect on the direction of HUMANA i.e., HUMANA and Moderately Aggressive go up and down completely randomly.
Pair Corralation between HUMANA and Moderately Aggressive
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Moderately Aggressive. In addition to that, HUMANA INC is as risky as Moderately Aggressive. It trades about -0.07 of its total potential returns per unit of risk. Moderately Aggressive Balanced is currently generating about 0.23 per unit of volatility. If you would invest 1,211 in Moderately Aggressive Balanced on August 29, 2024 and sell it today you would earn a total of 39.00 from holding Moderately Aggressive Balanced or generate 3.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Moderately Aggressive Balanced
Performance |
| Timeline |
| HUMANA INC |
| Moderately Aggressive |
HUMANA and Moderately Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Moderately Aggressive
The main advantage of trading using opposite HUMANA and Moderately Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Moderately Aggressive 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 Moderately Aggressive will offset losses from the drop in Moderately Aggressive's long position.The idea behind HUMANA INC and Moderately Aggressive Balanced 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.| Moderately Aggressive vs. American Balanced Fund | Moderately Aggressive vs. American Balanced Fund | Moderately Aggressive vs. HUMANA INC | Moderately Aggressive 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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