Correlation Between HUMANA and Wcm Focused
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By analyzing existing cross correlation between HUMANA INC and Wcm Focused Emerging, you can compare the effects of market volatilities on HUMANA and Wcm Focused 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 Wcm Focused. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Wcm Focused.
Diversification Opportunities for HUMANA and Wcm Focused
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Wcm is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Wcm Focused Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wcm Focused Emerging 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 Wcm Focused. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wcm Focused Emerging has no effect on the direction of HUMANA i.e., HUMANA and Wcm Focused go up and down completely randomly.
Pair Corralation between HUMANA and Wcm Focused
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Wcm Focused. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.48 times less risky than Wcm Focused. The bond trades about -0.04 of its potential returns per unit of risk. The Wcm Focused Emerging is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,371 in Wcm Focused Emerging on September 1, 2024 and sell it today you would earn a total of 105.00 from holding Wcm Focused Emerging or generate 7.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.64% |
| Values | Daily Returns |
HUMANA INC vs. Wcm Focused Emerging
Performance |
| Timeline |
| HUMANA INC |
| Wcm Focused Emerging |
HUMANA and Wcm Focused Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Wcm Focused
The main advantage of trading using opposite HUMANA and Wcm Focused positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Wcm Focused 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 Wcm Focused will offset losses from the drop in Wcm Focused's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Wcm Focused vs. Wcm Focused International | Wcm Focused vs. Wcm Focused International | Wcm Focused vs. Wcm Small Cap | Wcm Focused vs. Wcm Sustainable 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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