Correlation Between HUMANA and Jpmorgan Small
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By analyzing existing cross correlation between HUMANA INC and Jpmorgan Small Cap, you can compare the effects of market volatilities on HUMANA and Jpmorgan Small 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 Jpmorgan Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Jpmorgan Small.
Diversification Opportunities for HUMANA and Jpmorgan Small
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Jpmorgan is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Jpmorgan Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Small Cap 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 Jpmorgan Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Small Cap has no effect on the direction of HUMANA i.e., HUMANA and Jpmorgan Small go up and down completely randomly.
Pair Corralation between HUMANA and Jpmorgan Small
Assuming the 90 days trading horizon HUMANA INC is expected to generate 61.6 times more return on investment than Jpmorgan Small. However, HUMANA is 61.6 times more volatile than Jpmorgan Small Cap. It trades about 0.07 of its potential returns per unit of risk. Jpmorgan Small Cap is currently generating about 0.02 per unit of risk. If you would invest 8,081 in HUMANA INC on August 29, 2024 and sell it today you would lose (46.00) from holding HUMANA INC or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.55% |
| Values | Daily Returns |
HUMANA INC vs. Jpmorgan Small Cap
Performance |
| Timeline |
| HUMANA INC |
| Jpmorgan Small Cap |
HUMANA and Jpmorgan Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Jpmorgan Small
The main advantage of trading using opposite HUMANA and Jpmorgan Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Jpmorgan Small 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 Jpmorgan Small will offset losses from the drop in Jpmorgan Small's long position.The idea behind HUMANA INC and Jpmorgan Small Cap 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.| Jpmorgan Small vs. Vanguard Small Cap Index | Jpmorgan Small vs. T Rowe Price | Jpmorgan Small vs. HUMANA INC | Jpmorgan Small 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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