Correlation Between HUMANA and Swiss Re
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By analyzing existing cross correlation between HUMANA INC and Swiss Re, you can compare the effects of market volatilities on HUMANA and Swiss Re 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 Swiss Re. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Swiss Re.
Diversification Opportunities for HUMANA and Swiss Re
Very good diversification
The 3 months correlation between HUMANA and Swiss is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Swiss Re in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Re 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 Swiss Re. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Re has no effect on the direction of HUMANA i.e., HUMANA and Swiss Re go up and down completely randomly.
Pair Corralation between HUMANA and Swiss Re
Assuming the 90 days trading horizon HUMANA INC is expected to generate 60.03 times more return on investment than Swiss Re. However, HUMANA is 60.03 times more volatile than Swiss Re. It trades about 0.07 of its potential returns per unit of risk. Swiss Re is currently generating about 0.1 per unit of risk. If you would invest 7,953 in HUMANA INC on September 12, 2024 and sell it today you would lose (258.00) from holding HUMANA INC or give up 3.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.13% |
| Values | Daily Returns |
HUMANA INC vs. Swiss Re
Performance |
| Timeline |
| HUMANA INC |
| Swiss Re |
HUMANA and Swiss Re Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Swiss Re
The main advantage of trading using opposite HUMANA and Swiss Re positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Swiss Re 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 Swiss Re will offset losses from the drop in Swiss Re's long position.The idea behind HUMANA INC and Swiss Re 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.| Swiss Re vs. Freedom Bank of | Swiss Re vs. HUMANA INC | Swiss Re vs. Barloworld Ltd ADR | Swiss Re 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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