Correlation Between HUMANA and Guggenheim Directional
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By analyzing existing cross correlation between HUMANA INC and Guggenheim Directional Allocation, you can compare the effects of market volatilities on HUMANA and Guggenheim Directional 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 Guggenheim Directional. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Guggenheim Directional.
Diversification Opportunities for HUMANA and Guggenheim Directional
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Guggenheim is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Guggenheim Directional Allocat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Directional 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 Guggenheim Directional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Directional has no effect on the direction of HUMANA i.e., HUMANA and Guggenheim Directional go up and down completely randomly.
Pair Corralation between HUMANA and Guggenheim Directional
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Guggenheim Directional. In addition to that, HUMANA is 1.78 times more volatile than Guggenheim Directional Allocation. It trades about -0.21 of its total potential returns per unit of risk. Guggenheim Directional Allocation is currently generating about 0.38 per unit of volatility. If you would invest 1,867 in Guggenheim Directional Allocation on September 1, 2024 and sell it today you would earn a total of 102.00 from holding Guggenheim Directional Allocation or generate 5.46% 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. Guggenheim Directional Allocat
Performance |
| Timeline |
| HUMANA INC |
| Guggenheim Directional |
HUMANA and Guggenheim Directional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Guggenheim Directional
The main advantage of trading using opposite HUMANA and Guggenheim Directional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Guggenheim Directional 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 Guggenheim Directional will offset losses from the drop in Guggenheim Directional's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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