Correlation Between HUMANA and SPDR Portfolio
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By analyzing existing cross correlation between HUMANA INC and SPDR Portfolio Emerging, 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
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and SPDR is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and SPDR Portfolio Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Portfolio Emerging 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 Emerging 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 1.28 times more volatile than SPDR Portfolio Emerging. It trades about -0.19 of its total potential returns per unit of risk. SPDR Portfolio Emerging is currently generating about 0.02 per unit of volatility. If you would invest 4,027 in SPDR Portfolio Emerging on September 12, 2024 and sell it today you would earn a total of 13.00 from holding SPDR Portfolio Emerging or generate 0.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. SPDR Portfolio Emerging
Performance |
| Timeline |
| HUMANA INC |
| SPDR Portfolio Emerging |
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.The idea behind HUMANA INC and SPDR Portfolio Emerging 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.| SPDR Portfolio vs. Global X MSCI | SPDR Portfolio vs. Global X Alternative | SPDR Portfolio vs. iShares Emerging Markets | SPDR Portfolio vs. Global X SuperDividend |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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