Correlation Between HUMANA and Clearbridge Appreciation
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By analyzing existing cross correlation between HUMANA INC and Clearbridge Appreciation Fund, you can compare the effects of market volatilities on HUMANA and Clearbridge Appreciation 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 Clearbridge Appreciation. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Clearbridge Appreciation.
Diversification Opportunities for HUMANA and Clearbridge Appreciation
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Clearbridge is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Clearbridge Appreciation Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Appreciation 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 Clearbridge Appreciation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Appreciation has no effect on the direction of HUMANA i.e., HUMANA and Clearbridge Appreciation go up and down completely randomly.
Pair Corralation between HUMANA and Clearbridge Appreciation
Assuming the 90 days trading horizon HUMANA INC is expected to generate 138.29 times more return on investment than Clearbridge Appreciation. However, HUMANA is 138.29 times more volatile than Clearbridge Appreciation Fund. It trades about 0.08 of its potential returns per unit of risk. Clearbridge Appreciation Fund is currently generating about 0.1 per unit of risk. If you would invest 7,827 in HUMANA INC on August 28, 2024 and sell it today you would earn a total of 208.00 from holding HUMANA INC or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
HUMANA INC vs. Clearbridge Appreciation Fund
Performance |
| Timeline |
| HUMANA INC |
| Clearbridge Appreciation |
HUMANA and Clearbridge Appreciation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Clearbridge Appreciation
The main advantage of trading using opposite HUMANA and Clearbridge Appreciation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Clearbridge Appreciation 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 Clearbridge Appreciation will offset losses from the drop in Clearbridge Appreciation's long position.| HUMANA vs. Zhihu Inc ADR | HUMANA vs. National CineMedia | HUMANA vs. Comstock Holding Companies | HUMANA vs. PennantPark Investment |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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