Correlation Between HUMANA and Maryland Tax-free
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By analyzing existing cross correlation between HUMANA INC and Maryland Tax Free Bond, you can compare the effects of market volatilities on HUMANA and Maryland Tax-free 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 Maryland Tax-free. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Maryland Tax-free.
Diversification Opportunities for HUMANA and Maryland Tax-free
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and Maryland is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Maryland Tax Free Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maryland Tax Free 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 Maryland Tax-free. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maryland Tax Free has no effect on the direction of HUMANA i.e., HUMANA and Maryland Tax-free go up and down completely randomly.
Pair Corralation between HUMANA and Maryland Tax-free
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Maryland Tax-free. In addition to that, HUMANA is 1.31 times more volatile than Maryland Tax Free Bond. It trades about -0.11 of its total potential returns per unit of risk. Maryland Tax Free Bond is currently generating about 0.16 per unit of volatility. If you would invest 1,008 in Maryland Tax Free Bond on August 28, 2024 and sell it today you would earn a total of 12.00 from holding Maryland Tax Free Bond or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
HUMANA INC vs. Maryland Tax Free Bond
Performance |
| Timeline |
| HUMANA INC |
| Maryland Tax Free |
HUMANA and Maryland Tax-free Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Maryland Tax-free
The main advantage of trading using opposite HUMANA and Maryland Tax-free positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Maryland Tax-free 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 Maryland Tax-free will offset losses from the drop in Maryland Tax-free's long position.| HUMANA vs. Zhihu Inc ADR | HUMANA vs. National CineMedia | HUMANA vs. Comstock Holding Companies | HUMANA vs. PennantPark Investment |
| Maryland Tax-free vs. New Jersey Tax Free | Maryland Tax-free vs. New York Tax Free | Maryland Tax-free vs. Maryland Short Term Tax Free |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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