Correlation Between HUMANA and SPDR Portfolio
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By analyzing existing cross correlation between HUMANA INC and SPDR Portfolio Aggregate, you can compare the effects of market volatilities on HUMANA and SPDR Portfolio 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 SPDR Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and SPDR Portfolio.
Diversification Opportunities for HUMANA and SPDR Portfolio
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and SPDR is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and SPDR Portfolio Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Portfolio Aggregate 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 SPDR Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Portfolio Aggregate has no effect on the direction of HUMANA i.e., HUMANA and SPDR Portfolio go up and down completely randomly.
Pair Corralation between HUMANA and SPDR Portfolio
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the SPDR Portfolio. In addition to that, HUMANA is 2.63 times more volatile than SPDR Portfolio Aggregate. It trades about -0.18 of its total potential returns per unit of risk. SPDR Portfolio Aggregate is currently generating about -0.09 per unit of volatility. If you would invest 2,596 in SPDR Portfolio Aggregate on September 12, 2024 and sell it today you would lose (48.00) from holding SPDR Portfolio Aggregate or give up 1.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
HUMANA INC vs. SPDR Portfolio Aggregate
Performance |
| Timeline |
| HUMANA INC |
| SPDR Portfolio Aggregate |
HUMANA and SPDR Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and SPDR Portfolio
The main advantage of trading using opposite HUMANA and SPDR Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, SPDR Portfolio 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 SPDR Portfolio will offset losses from the drop in SPDR Portfolio's long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
| SPDR Portfolio vs. SPDR SP World | SPDR Portfolio vs. SPDR Barclays Intermediate | SPDR Portfolio vs. SPDR Portfolio SP | SPDR Portfolio vs. SPDR Portfolio Emerging |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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