Correlation Between HUMANA and SPDR Galaxy
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By analyzing existing cross correlation between HUMANA INC and SPDR Galaxy Transformative, you can compare the effects of market volatilities on HUMANA and SPDR Galaxy 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 SPDR Galaxy. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and SPDR Galaxy.
Diversification Opportunities for HUMANA and SPDR Galaxy
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and SPDR is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and SPDR Galaxy Transformative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Galaxy Transfor 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 SPDR Galaxy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Galaxy Transfor has no effect on the direction of HUMANA i.e., HUMANA and SPDR Galaxy go up and down completely randomly.
Pair Corralation between HUMANA and SPDR Galaxy
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the SPDR Galaxy. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 2.85 times less risky than SPDR Galaxy. The bond trades about -0.26 of its potential returns per unit of risk. The SPDR Galaxy Transformative is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 3,159 in SPDR Galaxy Transformative on August 26, 2024 and sell it today you would earn a total of 300.00 from holding SPDR Galaxy Transformative or generate 9.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. SPDR Galaxy Transformative
Performance |
| Timeline |
| HUMANA INC |
| SPDR Galaxy Transfor |
HUMANA and SPDR Galaxy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and SPDR Galaxy
The main advantage of trading using opposite HUMANA and SPDR Galaxy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, SPDR Galaxy 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 SPDR Galaxy will offset losses from the drop in SPDR Galaxy's long position.| HUMANA vs. Deluxe | HUMANA vs. Vita Coco | HUMANA vs. Willamette Valley Vineyards | HUMANA vs. Global E Online |
| SPDR Galaxy vs. Invesco DWA Utilities | SPDR Galaxy vs. Invesco Dynamic Large | SPDR Galaxy vs. Invesco Dynamic Large | SPDR Galaxy vs. HUMANA INC |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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