Correlation Between 90331HPL1 and HUMANA
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By analyzing existing cross correlation between US BANK NATIONAL and HUMANA INC 395, you can compare the effects of market volatilities on 90331HPL1 and HUMANA 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 90331HPL1 with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of 90331HPL1 and HUMANA.
Diversification Opportunities for 90331HPL1 and HUMANA
Poor diversification
The 3 months correlation between 90331HPL1 and HUMANA is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding US BANK NATIONAL and HUMANA INC 395 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC 5 and 90331HPL1 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 US BANK NATIONAL are associated (or correlated) with HUMANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUMANA INC 5 has no effect on the direction of 90331HPL1 i.e., 90331HPL1 and HUMANA go up and down completely randomly.
Pair Corralation between 90331HPL1 and HUMANA
Assuming the 90 days trading horizon US BANK NATIONAL is expected to generate 306.21 times more return on investment than HUMANA. However, 90331HPL1 is 306.21 times more volatile than HUMANA INC 395. It trades about 0.09 of its potential returns per unit of risk. HUMANA INC 395 is currently generating about 0.01 per unit of risk. If you would invest 9,502 in US BANK NATIONAL on September 1, 2024 and sell it today you would earn a total of 45.00 from holding US BANK NATIONAL or generate 0.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 66.14% |
| Values | Daily Returns |
US BANK NATIONAL vs. HUMANA INC 395
Performance |
| Timeline |
| US BANK NATIONAL |
| HUMANA INC 5 |
90331HPL1 and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 90331HPL1 and HUMANA
The main advantage of trading using opposite 90331HPL1 and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 90331HPL1 position performs unexpectedly, HUMANA 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 HUMANA will offset losses from the drop in HUMANA's long position.| 90331HPL1 vs. Centessa Pharmaceuticals PLC | 90331HPL1 vs. Catalyst Pharmaceuticals | 90331HPL1 vs. Acumen Pharmaceuticals | 90331HPL1 vs. Inhibrx |
| HUMANA vs. MI Homes | HUMANA vs. Lifevantage | HUMANA vs. Cabo Drilling Corp | HUMANA vs. FitLife Brands, Common |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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