Correlation Between HUMANA and Simt Real
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By analyzing existing cross correlation between HUMANA INC and Simt Real Return, you can compare the effects of market volatilities on HUMANA and Simt Real 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 Simt Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Simt Real.
Diversification Opportunities for HUMANA and Simt Real
Significant diversification
The 3 months correlation between HUMANA and Simt is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Simt Real Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Real Return 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 Simt Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Real Return has no effect on the direction of HUMANA i.e., HUMANA and Simt Real go up and down completely randomly.
Pair Corralation between HUMANA and Simt Real
Assuming the 90 days trading horizon HUMANA INC is expected to generate 345.09 times more return on investment than Simt Real. However, HUMANA is 345.09 times more volatile than Simt Real Return. It trades about 0.05 of its potential returns per unit of risk. Simt Real Return is currently generating about 0.12 per unit of risk. If you would invest 7,809 in HUMANA INC on August 29, 2024 and sell it today you would earn a total of 226.00 from holding HUMANA INC or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.29% |
| Values | Daily Returns |
HUMANA INC vs. Simt Real Return
Performance |
| Timeline |
| HUMANA INC |
| Simt Real Return |
HUMANA and Simt Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Simt Real
The main advantage of trading using opposite HUMANA and Simt Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Simt Real 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 Simt Real will offset losses from the drop in Simt Real's long position.The idea behind HUMANA INC and Simt Real Return 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.| Simt Real vs. HUMANA INC | Simt Real vs. Aquagold International | Simt Real vs. Barloworld Ltd ADR | Simt Real vs. Morningstar Unconstrained Allocation |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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