Correlation Between HUMANA and Core Plus
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By analyzing existing cross correlation between HUMANA INC and Core Plus Income, you can compare the effects of market volatilities on HUMANA and Core Plus 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 Core Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Core Plus.
Diversification Opportunities for HUMANA and Core Plus
Poor diversification
The 3 months correlation between HUMANA and CORE is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Core Plus Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Plus Income 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 Core Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Plus Income has no effect on the direction of HUMANA i.e., HUMANA and Core Plus go up and down completely randomly.
Pair Corralation between HUMANA and Core Plus
Assuming the 90 days trading horizon HUMANA INC is expected to generate 230.01 times more return on investment than Core Plus. However, HUMANA is 230.01 times more volatile than Core Plus Income. It trades about 0.07 of its potential returns per unit of risk. Core Plus Income is currently generating about 0.06 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 Together |
| Strength | Significant |
| Accuracy | 93.55% |
| Values | Daily Returns |
HUMANA INC vs. Core Plus Income
Performance |
| Timeline |
| HUMANA INC |
| Core Plus Income |
HUMANA and Core Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Core Plus
The main advantage of trading using opposite HUMANA and Core Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Core Plus 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 Core Plus will offset losses from the drop in Core Plus' long position.The idea behind HUMANA INC and Core Plus Income 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.| Core Plus vs. Pimco Income Fund | Core Plus vs. HUMANA INC | Core Plus vs. Aquagold International | Core Plus vs. Barloworld Ltd 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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