Correlation Between HUMANA and Tiaa-cref Inflation-linked
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Tiaa Cref Inflation Linked Bond, you can compare the effects of market volatilities on HUMANA and Tiaa-cref Inflation-linked 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 Tiaa-cref Inflation-linked. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Tiaa-cref Inflation-linked.
Diversification Opportunities for HUMANA and Tiaa-cref Inflation-linked
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and Tiaa-cref is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Tiaa Cref Inflation Linked Bon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa-cref Inflation-linked 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 Tiaa-cref Inflation-linked. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa-cref Inflation-linked has no effect on the direction of HUMANA i.e., HUMANA and Tiaa-cref Inflation-linked go up and down completely randomly.
Pair Corralation between HUMANA and Tiaa-cref Inflation-linked
Assuming the 90 days trading horizon HUMANA INC is expected to generate 362.57 times more return on investment than Tiaa-cref Inflation-linked. However, HUMANA is 362.57 times more volatile than Tiaa Cref Inflation Linked Bond. It trades about 0.08 of its potential returns per unit of risk. Tiaa Cref Inflation Linked Bond is currently generating about 0.07 per unit of risk. If you would invest 7,887 in HUMANA INC on September 2, 2024 and sell it today you would lose (192.00) from holding HUMANA INC or give up 2.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.58% |
| Values | Daily Returns |
HUMANA INC vs. Tiaa Cref Inflation Linked Bon
Performance |
| Timeline |
| HUMANA INC |
| Tiaa-cref Inflation-linked |
HUMANA and Tiaa-cref Inflation-linked Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Tiaa-cref Inflation-linked
The main advantage of trading using opposite HUMANA and Tiaa-cref Inflation-linked positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Tiaa-cref Inflation-linked 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 Tiaa-cref Inflation-linked will offset losses from the drop in Tiaa-cref Inflation-linked's long position.The idea behind HUMANA INC and Tiaa Cref Inflation Linked Bond 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.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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |