Correlation Between HUMANA and SPDR BOFA
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By analyzing existing cross correlation between HUMANA INC and SPDR BOFA MERRILL, you can compare the effects of market volatilities on HUMANA and SPDR BOFA 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 SPDR BOFA. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and SPDR BOFA.
Diversification Opportunities for HUMANA and SPDR BOFA
Pay attention - limited upside
The 3 months correlation between HUMANA and SPDR is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and SPDR BOFA MERRILL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR BOFA MERRILL 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 SPDR BOFA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR BOFA MERRILL has no effect on the direction of HUMANA i.e., HUMANA and SPDR BOFA go up and down completely randomly.
Pair Corralation between HUMANA and SPDR BOFA
Assuming the 90 days trading horizon HUMANA INC is expected to generate 55.86 times more return on investment than SPDR BOFA. However, HUMANA is 55.86 times more volatile than SPDR BOFA MERRILL. It trades about 0.07 of its potential returns per unit of risk. SPDR BOFA MERRILL is currently generating about 0.1 per unit of risk. If you would invest 8,030 in HUMANA INC on August 27, 2024 and sell it today you would lose (335.00) from holding HUMANA INC or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.95% |
| Values | Daily Returns |
HUMANA INC vs. SPDR BOFA MERRILL
Performance |
| Timeline |
| HUMANA INC |
| SPDR BOFA MERRILL |
HUMANA and SPDR BOFA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and SPDR BOFA
The main advantage of trading using opposite HUMANA and SPDR BOFA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, SPDR BOFA 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 SPDR BOFA will offset losses from the drop in SPDR BOFA's long position.| HUMANA vs. Balchem | HUMANA vs. Stepan Company | HUMANA vs. Videolocity International | HUMANA vs. Luxfer Holdings PLC |
| SPDR BOFA vs. Invesco Dynamic Large | SPDR BOFA vs. Perella Weinberg Partners | SPDR BOFA vs. HUMANA INC | SPDR BOFA vs. Aquagold International |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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