Correlation Between Magellan Health and Humana
Can any of the company-specific risk be diversified away by investing in both Magellan Health and Humana at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Magellan Health and Humana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magellan Health and Humana Inc, you can compare the effects of market volatilities on Magellan Health 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 Magellan Health with a short position of Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magellan Health and Humana.
Diversification Opportunities for Magellan Health and Humana
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Magellan and Humana is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Magellan Health and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc and Magellan Health 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 Magellan Health 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 has no effect on the direction of Magellan Health i.e., Magellan Health and Humana go up and down completely randomly.
Pair Corralation between Magellan Health and Humana
If you would invest (100.00) in Magellan Health on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Magellan Health or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Magellan Health vs. Humana Inc
Performance |
| Timeline |
| Magellan Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Humana Inc |
Magellan Health and Humana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magellan Health and Humana
The main advantage of trading using opposite Magellan Health and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magellan Health 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.| Magellan Health vs. Tesla Inc | Magellan Health vs. Transphorm Technology | Magellan Health vs. Visteon Corp | Magellan Health vs. FDG Electric Vehicles |
| Humana vs. Cigna Corp | Humana vs. Definitive Healthcare Corp | Humana vs. Edwards Lifesciences Corp | Humana vs. Guardant Health |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |