Correlation Between HUMANA and American Mutual
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By analyzing existing cross correlation between HUMANA INC and American Mutual Fund, you can compare the effects of market volatilities on HUMANA and American Mutual 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 American Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and American Mutual.
Diversification Opportunities for HUMANA and American Mutual
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and American is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and American Mutual Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Mutual 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 American Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Mutual has no effect on the direction of HUMANA i.e., HUMANA and American Mutual go up and down completely randomly.
Pair Corralation between HUMANA and American Mutual
Assuming the 90 days trading horizon HUMANA INC is expected to generate 2.29 times more return on investment than American Mutual. However, HUMANA is 2.29 times more volatile than American Mutual Fund. It trades about 0.1 of its potential returns per unit of risk. American Mutual Fund is currently generating about 0.02 per unit of risk. If you would invest 8,006 in HUMANA INC on February 4, 2024 and sell it today you would earn a total of 406.00 from holding HUMANA INC or generate 5.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 93.02% |
Values | Daily Returns |
HUMANA INC vs. American Mutual Fund
Performance |
Timeline |
HUMANA INC |
American Mutual |
HUMANA and American Mutual Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HUMANA and American Mutual
The main advantage of trading using opposite HUMANA and American Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, American Mutual 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 American Mutual will offset losses from the drop in American Mutual's long position.HUMANA vs. AEP TEX INC | HUMANA vs. US BANK NATIONAL | HUMANA vs. Global Blue Group | HUMANA vs. Dominion Energy |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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