Correlation Between HUMANA and UWM Holdings
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By analyzing existing cross correlation between HUMANA INC and UWM Holdings Corp, you can compare the effects of market volatilities on HUMANA and UWM Holdings 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 UWM Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and UWM Holdings.
Diversification Opportunities for HUMANA and UWM Holdings
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUMANA and UWM is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and UWM Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UWM Holdings Corp 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 UWM Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UWM Holdings Corp has no effect on the direction of HUMANA i.e., HUMANA and UWM Holdings go up and down completely randomly.
Pair Corralation between HUMANA and UWM Holdings
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the UWM Holdings. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 4.34 times less risky than UWM Holdings. The bond trades about -0.07 of its potential returns per unit of risk. The UWM Holdings Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 663.00 in UWM Holdings Corp on August 29, 2024 and sell it today you would lose (7.00) from holding UWM Holdings Corp or give up 1.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.96% |
| Values | Daily Returns |
HUMANA INC vs. UWM Holdings Corp
Performance |
| Timeline |
| HUMANA INC |
| UWM Holdings Corp |
HUMANA and UWM Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and UWM Holdings
The main advantage of trading using opposite HUMANA and UWM Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, UWM Holdings 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 UWM Holdings will offset losses from the drop in UWM Holdings' long position.The idea behind HUMANA INC and UWM Holdings Corp 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.| UWM Holdings vs. American International Group | UWM Holdings vs. Groupon | UWM Holdings vs. HUMANA INC | UWM Holdings vs. Aquagold International |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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