Correlation Between HUMANA and Salient Mlp
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By analyzing existing cross correlation between HUMANA INC and Salient Mlp Energy, you can compare the effects of market volatilities on HUMANA and Salient Mlp 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 Salient Mlp. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Salient Mlp.
Diversification Opportunities for HUMANA and Salient Mlp
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Salient is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Salient Mlp Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Mlp Energy 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 Salient Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Mlp Energy has no effect on the direction of HUMANA i.e., HUMANA and Salient Mlp go up and down completely randomly.
Pair Corralation between HUMANA and Salient Mlp
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Salient Mlp. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.06 times less risky than Salient Mlp. The bond trades about -0.19 of its potential returns per unit of risk. The Salient Mlp Energy is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,036 in Salient Mlp Energy on September 13, 2024 and sell it today you would lose (8.00) from holding Salient Mlp Energy or give up 0.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUMANA INC vs. Salient Mlp Energy
Performance |
| Timeline |
| HUMANA INC |
| Salient Mlp Energy |
HUMANA and Salient Mlp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Salient Mlp
The main advantage of trading using opposite HUMANA and Salient Mlp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Salient Mlp 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 Salient Mlp will offset losses from the drop in Salient Mlp's long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
| Salient Mlp vs. Salient Tactical Plus | Salient Mlp vs. Salient Tactical Plus | Salient Mlp vs. Salient Tactical Growth | Salient Mlp vs. Salient Tactical Growth |
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 Stocks Directory module to find actively traded stocks across global markets.
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