Correlation Between HUMANA and Thornburg New
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By analyzing existing cross correlation between HUMANA INC and Thornburg New Mexico, you can compare the effects of market volatilities on HUMANA and Thornburg New 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 Thornburg New. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Thornburg New.
Diversification Opportunities for HUMANA and Thornburg New
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUMANA and Thornburg is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Thornburg New Mexico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thornburg New Mexico 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 Thornburg New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thornburg New Mexico has no effect on the direction of HUMANA i.e., HUMANA and Thornburg New go up and down completely randomly.
Pair Corralation between HUMANA and Thornburg New
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Thornburg New. In addition to that, HUMANA is 5.18 times more volatile than Thornburg New Mexico. It trades about -0.04 of its total potential returns per unit of risk. Thornburg New Mexico is currently generating about 0.15 per unit of volatility. If you would invest 1,215 in Thornburg New Mexico on September 1, 2024 and sell it today you would earn a total of 30.00 from holding Thornburg New Mexico or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
HUMANA INC vs. Thornburg New Mexico
Performance |
| Timeline |
| HUMANA INC |
| Thornburg New Mexico |
HUMANA and Thornburg New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Thornburg New
The main advantage of trading using opposite HUMANA and Thornburg New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Thornburg New 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 Thornburg New will offset losses from the drop in Thornburg New's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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