Correlation Between HUMANA and Kinetics Global
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By analyzing existing cross correlation between HUMANA INC and Kinetics Global Fund, you can compare the effects of market volatilities on HUMANA and Kinetics Global 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 Kinetics Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Kinetics Global.
Diversification Opportunities for HUMANA and Kinetics Global
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Kinetics is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Kinetics Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Global 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 Kinetics Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Global has no effect on the direction of HUMANA i.e., HUMANA and Kinetics Global go up and down completely randomly.
Pair Corralation between HUMANA and Kinetics Global
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Kinetics Global. In addition to that, HUMANA is 1.01 times more volatile than Kinetics Global Fund. It trades about -0.09 of its total potential returns per unit of risk. Kinetics Global Fund is currently generating about -0.01 per unit of volatility. If you would invest 1,685 in Kinetics Global Fund on November 27, 2024 and sell it today you would lose (4.00) from holding Kinetics Global Fund or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Kinetics Global Fund
Performance |
| Timeline |
| HUMANA INC |
| Kinetics Global |
HUMANA and Kinetics Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Kinetics Global
The main advantage of trading using opposite HUMANA and Kinetics Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Kinetics Global 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 Kinetics Global will offset losses from the drop in Kinetics Global's long position.| HUMANA vs. Amkor Technology | HUMANA vs. Primo Brands | HUMANA vs. The Coca Cola | HUMANA vs. Brandywine Realty Trust |
| Kinetics Global vs. Kinetics Internet Fund | Kinetics Global vs. Kinetics Paradigm Fund | Kinetics Global vs. Jacob Internet Fund | Kinetics Global vs. Kinetics Small Cap |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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