Correlation Between HUMANA and Timothy Plan
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By analyzing existing cross correlation between HUMANA INC and Timothy Plan International, you can compare the effects of market volatilities on HUMANA and Timothy Plan 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 Timothy Plan. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Timothy Plan.
Diversification Opportunities for HUMANA and Timothy Plan
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUMANA and Timothy is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Timothy Plan International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Plan Interna 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 Timothy Plan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timothy Plan Interna has no effect on the direction of HUMANA i.e., HUMANA and Timothy Plan go up and down completely randomly.
Pair Corralation between HUMANA and Timothy Plan
Assuming the 90 days trading horizon HUMANA INC is expected to generate 97.61 times more return on investment than Timothy Plan. However, HUMANA is 97.61 times more volatile than Timothy Plan International. It trades about 0.07 of its potential returns per unit of risk. Timothy Plan International is currently generating about 0.05 per unit of risk. If you would invest 8,012 in HUMANA INC on September 2, 2024 and sell it today you would lose (317.00) from holding HUMANA INC or give up 3.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.95% |
| Values | Daily Returns |
HUMANA INC vs. Timothy Plan International
Performance |
| Timeline |
| HUMANA INC |
| Timothy Plan Interna |
HUMANA and Timothy Plan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Timothy Plan
The main advantage of trading using opposite HUMANA and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Timothy Plan 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 Timothy Plan will offset losses from the drop in Timothy Plan's long position.The idea behind HUMANA INC and Timothy Plan International 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.| Timothy Plan vs. Timothy Small Cap Value | Timothy Plan vs. Timothy Largemid Cap Value | Timothy Plan vs. Timothy Plan Large | Timothy Plan vs. Timothy Aggressive Growth |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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