Correlation Between HUMANA and Wasatch Small
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By analyzing existing cross correlation between HUMANA INC and Wasatch Small Cap, you can compare the effects of market volatilities on HUMANA and Wasatch 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 Wasatch Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Wasatch Small.
Diversification Opportunities for HUMANA and Wasatch Small
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Wasatch is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Wasatch Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasatch 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 Wasatch Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasatch Small Cap has no effect on the direction of HUMANA i.e., HUMANA and Wasatch Small go up and down completely randomly.
Pair Corralation between HUMANA and Wasatch Small
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Wasatch Small. In addition to that, HUMANA is 1.41 times more volatile than Wasatch Small Cap. It trades about -0.19 of its total potential returns per unit of risk. Wasatch Small Cap is currently generating about -0.06 per unit of volatility. If you would invest 1,254 in Wasatch Small Cap on September 13, 2024 and sell it today you would lose (13.00) from holding Wasatch Small Cap or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUMANA INC vs. Wasatch Small Cap
Performance |
| Timeline |
| HUMANA INC |
| Wasatch Small Cap |
HUMANA and Wasatch Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Wasatch Small
The main advantage of trading using opposite HUMANA and Wasatch Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Wasatch 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 Wasatch Small will offset losses from the drop in Wasatch Small's long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
| Wasatch Small vs. Highland Longshort Healthcare | Wasatch Small vs. The Gabelli Healthcare | Wasatch Small vs. Blackrock Health Sciences | Wasatch Small vs. Baillie Gifford Health |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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