Correlation Between HUMANA and SPDR Russell
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By analyzing existing cross correlation between HUMANA INC and SPDR Russell 1000, you can compare the effects of market volatilities on HUMANA and SPDR Russell 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 Russell. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and SPDR Russell.
Diversification Opportunities for HUMANA and SPDR Russell
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and SPDR is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and SPDR Russell 1000 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Russell 1000 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 Russell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Russell 1000 has no effect on the direction of HUMANA i.e., HUMANA and SPDR Russell go up and down completely randomly.
Pair Corralation between HUMANA and SPDR Russell
Assuming the 90 days trading horizon HUMANA INC is expected to generate 69.27 times more return on investment than SPDR Russell. However, HUMANA is 69.27 times more volatile than SPDR Russell 1000. It trades about 0.07 of its potential returns per unit of risk. SPDR Russell 1000 is currently generating about 0.04 per unit of risk. If you would invest 8,429 in HUMANA INC on December 30, 2023 and sell it today you would lose (333.00) from holding HUMANA INC or give up 3.95% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 91.09% |
Values | Daily Returns |
HUMANA INC vs. SPDR Russell 1000
Performance |
Timeline |
HUMANA INC |
SPDR Russell 1000 |
HUMANA and SPDR Russell Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HUMANA and SPDR Russell
The main advantage of trading using opposite HUMANA and SPDR Russell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, SPDR Russell 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 Russell will offset losses from the drop in SPDR Russell's long position.HUMANA vs. AEP TEX INC | HUMANA vs. US BANK NATIONAL | HUMANA vs. Vyne Therapeutics | HUMANA vs. Advanced Drainage Systems |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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