Correlation Between HUMANA and Thornburg Investment
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By analyzing existing cross correlation between HUMANA INC and Thornburg Investment Income, you can compare the effects of market volatilities on HUMANA and Thornburg Investment 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 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Thornburg Investment.
Diversification Opportunities for HUMANA and Thornburg Investment
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUMANA and Thornburg is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Thornburg Investment Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thornburg Investment 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thornburg Investment has no effect on the direction of HUMANA i.e., HUMANA and Thornburg Investment go up and down completely randomly.
Pair Corralation between HUMANA and Thornburg Investment
Assuming the 90 days trading horizon HUMANA INC is expected to generate 1.35 times more return on investment than Thornburg Investment. However, HUMANA is 1.35 times more volatile than Thornburg Investment Income. It trades about -0.07 of its potential returns per unit of risk. Thornburg Investment Income is currently generating about -0.32 per unit of risk. If you would invest 8,111 in HUMANA INC on August 29, 2024 and sell it today you would lose (76.00) from holding HUMANA INC or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
HUMANA INC vs. Thornburg Investment Income
Performance |
| Timeline |
| HUMANA INC |
| Thornburg Investment |
HUMANA and Thornburg Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Thornburg Investment
The main advantage of trading using opposite HUMANA and Thornburg Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Thornburg Investment 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 Investment will offset losses from the drop in Thornburg Investment's long position.The idea behind HUMANA INC and Thornburg Investment Income pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Thornburg Investment vs. Capital Income Builder | Thornburg Investment vs. Capital Income Builder | Thornburg Investment vs. Capital Income Builder | Thornburg Investment 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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