Correlation Between HUMANA and Harbor Long
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By analyzing existing cross correlation between HUMANA INC and Harbor Long Term Growers, you can compare the effects of market volatilities on HUMANA and Harbor Long 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 Harbor Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Harbor Long.
Diversification Opportunities for HUMANA and Harbor Long
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Harbor is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Harbor Long Term Growers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Long Term 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 Harbor Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Long Term has no effect on the direction of HUMANA i.e., HUMANA and Harbor Long go up and down completely randomly.
Pair Corralation between HUMANA and Harbor Long
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Harbor Long. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.42 times less risky than Harbor Long. The bond trades about -0.16 of its potential returns per unit of risk. The Harbor Long Term Growers is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,561 in Harbor Long Term Growers on August 29, 2024 and sell it today you would earn a total of 152.00 from holding Harbor Long Term Growers or generate 5.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.02% |
| Values | Daily Returns |
HUMANA INC vs. Harbor Long Term Growers
Performance |
| Timeline |
| HUMANA INC |
| Harbor Long Term |
HUMANA and Harbor Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Harbor Long
The main advantage of trading using opposite HUMANA and Harbor Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Harbor Long 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 Harbor Long will offset losses from the drop in Harbor Long's long position.The idea behind HUMANA INC and Harbor Long Term Growers 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.| Harbor Long vs. Weis Markets | Harbor Long vs. Village Super Market | Harbor Long vs. Ingles Markets Incorporated | Harbor Long vs. SpartanNash Co |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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