Correlation Between HUMANA and Short-term Government
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By analyzing existing cross correlation between HUMANA INC and Short Term Government Fund, you can compare the effects of market volatilities on HUMANA and Short-term Government 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 Short-term Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Short-term Government.
Diversification Opportunities for HUMANA and Short-term Government
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Short-term is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Short Term Government Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Term Government 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 Short-term Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Term Government has no effect on the direction of HUMANA i.e., HUMANA and Short-term Government go up and down completely randomly.
Pair Corralation between HUMANA and Short-term Government
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Short-term Government. In addition to that, HUMANA is 12.42 times more volatile than Short Term Government Fund. It trades about -0.21 of its total potential returns per unit of risk. Short Term Government Fund is currently generating about -0.05 per unit of volatility. If you would invest 908.00 in Short Term Government Fund on September 1, 2024 and sell it today you would lose (1.00) from holding Short Term Government Fund or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Short Term Government Fund
Performance |
| Timeline |
| HUMANA INC |
| Short Term Government |
HUMANA and Short-term Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Short-term Government
The main advantage of trading using opposite HUMANA and Short-term Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Short-term Government 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 Short-term Government will offset losses from the drop in Short-term Government's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Short-term Government vs. Dunham Real Estate | Short-term Government vs. Virtus Real Estate | Short-term Government vs. Great West Real Estate | Short-term Government vs. Deutsche Real Estate |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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