Correlation Between HUMANA and Jpmorgan Smartretirement
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By analyzing existing cross correlation between HUMANA INC and Jpmorgan Smartretirement 2035, you can compare the effects of market volatilities on HUMANA and Jpmorgan Smartretirement 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 Jpmorgan Smartretirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Jpmorgan Smartretirement.
Diversification Opportunities for HUMANA and Jpmorgan Smartretirement
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Jpmorgan is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Jpmorgan Smartretirement 2035 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Smartretirement 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 Jpmorgan Smartretirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Smartretirement has no effect on the direction of HUMANA i.e., HUMANA and Jpmorgan Smartretirement go up and down completely randomly.
Pair Corralation between HUMANA and Jpmorgan Smartretirement
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Jpmorgan Smartretirement. In addition to that, HUMANA is 2.15 times more volatile than Jpmorgan Smartretirement 2035. It trades about -0.16 of its total potential returns per unit of risk. Jpmorgan Smartretirement 2035 is currently generating about 0.05 per unit of volatility. If you would invest 2,123 in Jpmorgan Smartretirement 2035 on September 13, 2024 and sell it today you would earn a total of 20.00 from holding Jpmorgan Smartretirement 2035 or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Jpmorgan Smartretirement 2035
Performance |
| Timeline |
| HUMANA INC |
| Jpmorgan Smartretirement |
HUMANA and Jpmorgan Smartretirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Jpmorgan Smartretirement
The main advantage of trading using opposite HUMANA and Jpmorgan Smartretirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Jpmorgan Smartretirement 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 Jpmorgan Smartretirement will offset losses from the drop in Jpmorgan Smartretirement's long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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