Correlation Between HUMANA and Tax-exempt Fund
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By analyzing existing cross correlation between HUMANA INC and Tax Exempt Fund Of, you can compare the effects of market volatilities on HUMANA and Tax-exempt Fund 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 Tax-exempt Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Tax-exempt Fund.
Diversification Opportunities for HUMANA and Tax-exempt Fund
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and Tax-exempt is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Tax Exempt Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tax Exempt Fund 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 Tax-exempt Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tax Exempt Fund has no effect on the direction of HUMANA i.e., HUMANA and Tax-exempt Fund go up and down completely randomly.
Pair Corralation between HUMANA and Tax-exempt Fund
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Tax-exempt Fund. In addition to that, HUMANA is 3.23 times more volatile than Tax Exempt Fund Of. It trades about -0.04 of its total potential returns per unit of risk. Tax Exempt Fund Of is currently generating about 0.15 per unit of volatility. If you would invest 1,630 in Tax Exempt Fund Of on September 1, 2024 and sell it today you would earn a total of 65.00 from holding Tax Exempt Fund Of or generate 3.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.64% |
| Values | Daily Returns |
HUMANA INC vs. Tax Exempt Fund Of
Performance |
| Timeline |
| HUMANA INC |
| Tax Exempt Fund |
HUMANA and Tax-exempt Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Tax-exempt Fund
The main advantage of trading using opposite HUMANA and Tax-exempt Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Tax-exempt Fund 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 Tax-exempt Fund will offset losses from the drop in Tax-exempt Fund's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Tax-exempt Fund vs. Income Fund Of | Tax-exempt Fund vs. New World Fund | Tax-exempt Fund vs. American Mutual Fund | Tax-exempt Fund vs. American Mutual Fund |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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