Correlation Between HUMANA and Technology Select
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By analyzing existing cross correlation between HUMANA INC and Technology Select Sector, you can compare the effects of market volatilities on HUMANA and Technology Select 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 Technology Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Technology Select.
Diversification Opportunities for HUMANA and Technology Select
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and Technology is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Technology Select Sector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technology Select Sector 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 Technology Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technology Select Sector has no effect on the direction of HUMANA i.e., HUMANA and Technology Select go up and down completely randomly.
Pair Corralation between HUMANA and Technology Select
Assuming the 90 days trading horizon HUMANA INC is expected to generate 62.29 times more return on investment than Technology Select. However, HUMANA is 62.29 times more volatile than Technology Select Sector. It trades about 0.07 of its potential returns per unit of risk. Technology Select Sector is currently generating about 0.1 per unit of risk. If you would invest 7,723 in HUMANA INC on November 19, 2024 and sell it today you would earn a total of 176.00 from holding HUMANA INC or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.96% |
| Values | Daily Returns |
HUMANA INC vs. Technology Select Sector
Performance |
| Timeline |
| HUMANA INC |
| Technology Select Sector |
HUMANA and Technology Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Technology Select
The main advantage of trading using opposite HUMANA and Technology Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Technology Select 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 Technology Select will offset losses from the drop in Technology Select's long position.| HUMANA vs. ioneer Ltd American | HUMANA vs. Griffon | HUMANA vs. Hurco Companies | HUMANA vs. Perseus Mining Limited |
| Technology Select vs. First Trust Technology | Technology Select vs. Fidelity MSCI Information | Technology Select vs. First Trust Nasdaq | Technology Select vs. iShares Expanded Tech Software |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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