Correlation Between HUMANA and Sierra Tactical
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By analyzing existing cross correlation between HUMANA INC and Sierra Tactical Bond, you can compare the effects of market volatilities on HUMANA and Sierra Tactical 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 Sierra Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Sierra Tactical.
Diversification Opportunities for HUMANA and Sierra Tactical
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Sierra is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Sierra Tactical Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sierra Tactical Bond 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 Sierra Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sierra Tactical Bond has no effect on the direction of HUMANA i.e., HUMANA and Sierra Tactical go up and down completely randomly.
Pair Corralation between HUMANA and Sierra Tactical
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Sierra Tactical. In addition to that, HUMANA is 9.33 times more volatile than Sierra Tactical Bond. It trades about -0.16 of its total potential returns per unit of risk. Sierra Tactical Bond is currently generating about 0.21 per unit of volatility. If you would invest 2,622 in Sierra Tactical Bond on September 1, 2024 and sell it today you would earn a total of 18.00 from holding Sierra Tactical Bond or generate 0.69% 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. Sierra Tactical Bond
Performance |
| Timeline |
| HUMANA INC |
| Sierra Tactical Bond |
HUMANA and Sierra Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Sierra Tactical
The main advantage of trading using opposite HUMANA and Sierra Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Sierra Tactical 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 Sierra Tactical will offset losses from the drop in Sierra Tactical's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Sierra Tactical vs. Sierra Tactical Risk | Sierra Tactical vs. Sierra Tactical Risk | Sierra Tactical vs. Sierra Tactical Risk | Sierra Tactical vs. Sierra Tactical Risk |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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