Correlation Between Fidelity Advisor and HUMANA
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By analyzing existing cross correlation between Fidelity Advisor Stock and HUMANA INC, you can compare the effects of market volatilities on Fidelity Advisor 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 Fidelity Advisor with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and HUMANA.
Diversification Opportunities for Fidelity Advisor and HUMANA
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fidelity and HUMANA is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Stock and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Fidelity Advisor 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 Fidelity Advisor Stock 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 Fidelity Advisor i.e., Fidelity Advisor and HUMANA go up and down completely randomly.
Pair Corralation between Fidelity Advisor and HUMANA
Assuming the 90 days horizon Fidelity Advisor is expected to generate 10.68 times less return on investment than HUMANA. But when comparing it to its historical volatility, Fidelity Advisor Stock is 1.71 times less risky than HUMANA. It trades about 0.02 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 7,922 in HUMANA INC on January 25, 2024 and sell it today you would earn a total of 490.00 from holding HUMANA INC or generate 6.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 92.86% |
Values | Daily Returns |
Fidelity Advisor Stock vs. HUMANA INC
Performance |
Timeline |
Fidelity Advisor Stock |
HUMANA INC |
Fidelity Advisor and HUMANA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidelity Advisor and HUMANA
The main advantage of trading using opposite Fidelity Advisor and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor 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.Fidelity Advisor vs. Government Street Equity | Fidelity Advisor vs. Federated Mdt Mid Cap | Fidelity Advisor vs. Janus Enterprise Fund | Fidelity Advisor vs. Victory Integrity Mid 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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