Correlation Between HUMANA and Wilmington Large-cap
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By analyzing existing cross correlation between HUMANA INC and Wilmington Large Cap Strategy, you can compare the effects of market volatilities on HUMANA and Wilmington Large-cap 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 Wilmington Large-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Wilmington Large-cap.
Diversification Opportunities for HUMANA and Wilmington Large-cap
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Wilmington is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Wilmington Large Cap Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmington Large 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 Wilmington Large-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmington Large Cap has no effect on the direction of HUMANA i.e., HUMANA and Wilmington Large-cap go up and down completely randomly.
Pair Corralation between HUMANA and Wilmington Large-cap
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Wilmington Large-cap. In addition to that, HUMANA is 1.27 times more volatile than Wilmington Large Cap Strategy. It trades about -0.22 of its total potential returns per unit of risk. Wilmington Large Cap Strategy is currently generating about 0.22 per unit of volatility. If you would invest 3,343 in Wilmington Large Cap Strategy on August 29, 2024 and sell it today you would earn a total of 141.00 from holding Wilmington Large Cap Strategy or generate 4.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Wilmington Large Cap Strategy
Performance |
| Timeline |
| HUMANA INC |
| Wilmington Large Cap |
HUMANA and Wilmington Large-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Wilmington Large-cap
The main advantage of trading using opposite HUMANA and Wilmington Large-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Wilmington Large-cap 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 Wilmington Large-cap will offset losses from the drop in Wilmington Large-cap's long position.| HUMANA vs. Zhihu Inc ADR | HUMANA vs. National CineMedia | HUMANA vs. Comstock Holding Companies | HUMANA vs. PennantPark Investment |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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