Correlation Between HUMANA and Segall Bryant
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By analyzing existing cross correlation between HUMANA INC and Segall Bryant Hamill, you can compare the effects of market volatilities on HUMANA and Segall Bryant 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 Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Segall Bryant.
Diversification Opportunities for HUMANA and Segall Bryant
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Segall is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Segall Bryant Hamill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Segall Bryant Hamill 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 Segall Bryant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Segall Bryant Hamill has no effect on the direction of HUMANA i.e., HUMANA and Segall Bryant go up and down completely randomly.
Pair Corralation between HUMANA and Segall Bryant
Assuming the 90 days trading horizon HUMANA INC is expected to generate 75.14 times more return on investment than Segall Bryant. However, HUMANA is 75.14 times more volatile than Segall Bryant Hamill. It trades about 0.07 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.06 per unit of risk. If you would invest 8,028 in HUMANA INC on August 30, 2024 and sell it today you would lose (333.00) from holding HUMANA INC or give up 4.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.74% |
| Values | Daily Returns |
HUMANA INC vs. Segall Bryant Hamill
Performance |
| Timeline |
| HUMANA INC |
| Segall Bryant Hamill |
HUMANA and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Segall Bryant
The main advantage of trading using opposite HUMANA and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Segall Bryant 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 Segall Bryant will offset losses from the drop in Segall Bryant's long position.The idea behind HUMANA INC and Segall Bryant Hamill 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.| Segall Bryant vs. Putnam Equity Income | Segall Bryant vs. Putnam Growth Opportunities | Segall Bryant vs. HUMANA INC | Segall Bryant 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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