Correlation Between HUMANA and 1290 High
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By analyzing existing cross correlation between HUMANA INC and 1290 High Yield, you can compare the effects of market volatilities on HUMANA and 1290 High 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 1290 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and 1290 High.
Diversification Opportunities for HUMANA and 1290 High
Excellent diversification
The 3 months correlation between HUMANA and 1290 is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and 1290 High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1290 High Yield 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 1290 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1290 High Yield has no effect on the direction of HUMANA i.e., HUMANA and 1290 High go up and down completely randomly.
Pair Corralation between HUMANA and 1290 High
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the 1290 High. In addition to that, HUMANA is 8.62 times more volatile than 1290 High Yield. It trades about -0.21 of its total potential returns per unit of risk. 1290 High Yield is currently generating about 0.2 per unit of volatility. If you would invest 852.00 in 1290 High Yield on September 1, 2024 and sell it today you would earn a total of 5.00 from holding 1290 High Yield or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. 1290 High Yield
Performance |
| Timeline |
| HUMANA INC |
| 1290 High Yield |
HUMANA and 1290 High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and 1290 High
The main advantage of trading using opposite HUMANA and 1290 High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, 1290 High 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 1290 High will offset losses from the drop in 1290 High's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| 1290 High vs. 1290 Funds | 1290 High vs. 1290 Essex Small | 1290 High vs. 1290 Funds | 1290 High vs. 1290 Smartbeta Equity |
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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