Correlation Between HUMANA and MicroAlgo
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By analyzing existing cross correlation between HUMANA INC and MicroAlgo, you can compare the effects of market volatilities on HUMANA and MicroAlgo 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 MicroAlgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and MicroAlgo.
Diversification Opportunities for HUMANA and MicroAlgo
Very good diversification
The 3 months correlation between HUMANA and MicroAlgo is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and MicroAlgo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroAlgo 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 MicroAlgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroAlgo has no effect on the direction of HUMANA i.e., HUMANA and MicroAlgo go up and down completely randomly.
Pair Corralation between HUMANA and MicroAlgo
Assuming the 90 days trading horizon HUMANA INC is expected to generate 1.97 times more return on investment than MicroAlgo. However, HUMANA is 1.97 times more volatile than MicroAlgo. It trades about 0.08 of its potential returns per unit of risk. MicroAlgo is currently generating about 0.05 per unit of risk. If you would invest 8,146 in HUMANA INC on December 29, 2023 and sell it today you would lose (266.00) from holding HUMANA INC or give up 3.27% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 91.01% |
Values | Daily Returns |
HUMANA INC vs. MicroAlgo
Performance |
Timeline |
HUMANA INC |
MicroAlgo |
HUMANA and MicroAlgo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HUMANA and MicroAlgo
The main advantage of trading using opposite HUMANA and MicroAlgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, MicroAlgo 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 MicroAlgo will offset losses from the drop in MicroAlgo's long position.HUMANA vs. AEP TEX INC | HUMANA vs. US BANK NATIONAL | HUMANA vs. Palantir TechnologiesInc | HUMANA vs. Unum Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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