Correlation Between HUMANA and Tax Exempt
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By analyzing existing cross correlation between HUMANA INC and Tax Exempt Bond, you can compare the effects of market volatilities on HUMANA and Tax Exempt 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Tax Exempt.
Diversification Opportunities for HUMANA and Tax Exempt
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUMANA and Tax is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Tax Exempt Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tax Exempt 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 Tax Exempt. 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 Bond has no effect on the direction of HUMANA i.e., HUMANA and Tax Exempt go up and down completely randomly.
Pair Corralation between HUMANA and Tax Exempt
Assuming the 90 days trading horizon HUMANA INC is expected to generate 372.75 times more return on investment than Tax Exempt. However, HUMANA is 372.75 times more volatile than Tax Exempt Bond. It trades about 0.07 of its potential returns per unit of risk. Tax Exempt Bond is currently generating about 0.06 per unit of risk. If you would invest 8,078 in HUMANA INC on August 31, 2024 and sell it today you would lose (383.00) from holding HUMANA INC or give up 4.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.34% |
| Values | Daily Returns |
HUMANA INC vs. Tax Exempt Bond
Performance |
| Timeline |
| HUMANA INC |
| Tax Exempt Bond |
HUMANA and Tax Exempt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Tax Exempt
The main advantage of trading using opposite HUMANA and Tax Exempt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Tax Exempt 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 will offset losses from the drop in Tax Exempt's long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
| Tax Exempt vs. Versatile Bond Portfolio | Tax Exempt vs. Nuveen Arizona Municipal | Tax Exempt vs. Ambrus Core Bond | Tax Exempt vs. Thrivent Income 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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