# HUMANA INC Volatility

444859BR2 | 80.35 1.55 1.89% |

HUMANA INC holds Efficiency (Sharpe) Ratio of -0.0151, which attests that the entity had a -0.0151% return per unit of risk over the last 3 months. HUMANA INC exposes twenty-seven different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out HUMANA's Risk Adjusted Performance of 0.0057, market risk adjusted performance of 0.0278, and Semi Deviation of 1.6 to validate the risk estimate we provide.

**Key indicators related to HUMANA's volatility include:**30 Days Market Risk | Chance Of Default | 30 Days Economic Sensitivity |

HUMANA Bond volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of HUMANA daily returns, and it is calculated using variance and standard deviation. We also use HUMANA's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of HUMANA volatility.

HUMANA |

Downward market volatility can be a perfect environment for investors who play the long game with HUMANA. They may decide to buy additional shares of HUMANA at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.

## Moving against HUMANA Bond

0.69 | AA | Alcoa Corp Earnings Call This Week | PairCorr |

0.6 | CVX | Chevron Corp Fiscal Year End 7th of February 2025 | PairCorr |

0.59 | DIS | Walt Disney Fiscal Year End 13th of November 2024 | PairCorr |

0.56 | CAT | Caterpillar Fiscal Year End 3rd of February 2025 | PairCorr |

0.54 | HPQ | HP Inc Fiscal Year End 19th of November 2024 | PairCorr |

0.45 | HD | Home Depot | PairCorr |

0.36 | BAC | Bank of America Earnings Call This Week | PairCorr |

## HUMANA Market Sensitivity And Downside Risk

HUMANA's beta coefficient measures the volatility of HUMANA bond compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents HUMANA bond's returns against your selected market. In other words, HUMANA's beta of -0.46 provides an investor with an approximation of how much risk HUMANA bond can potentially add to one of your existing portfolios. HUMANA INC has relatively low volatility with skewness of 0.59 and kurtosis of 9.49. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure HUMANA's bond risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact HUMANA's bond price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

3 Months Beta |Analyze HUMANA INC Demand TrendCheck current 90 days HUMANA correlation with market (Dow Jones Industrial)## HUMANA Beta |

HUMANA standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

## Standard Deviation | 0.54 |

It is essential to understand the difference between upside risk (as represented by HUMANA's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of HUMANA's daily returns or price. Since the actual investment returns on holding a position in humana bond tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in HUMANA.

## HUMANA INC Bond Volatility Analysis

Volatility refers to the frequency at which HUMANA bond price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with HUMANA's price changes. Investors will then calculate the volatility of HUMANA's bond to predict their future moves. A bond that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A bond with relatively stable price changes has low volatility. A highly volatile bond is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of HUMANA's volatility:

### Historical Volatility

This type of bond volatility measures HUMANA's fluctuations based on previous trends. It's commonly used to predict HUMANA's future behavior based on its past. However, it cannot conclusively determine the future direction of the bond.### Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for HUMANA's current market price. This means that the bond will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on HUMANA's to be redeemed at a future date.Transformation |

The output start index for this execution was zero with a total number of output elements of sixty-one. HUMANA INC Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

## HUMANA Projected Return Density Against Market

Assuming the 90 days trading horizon HUMANA INC has a beta of -0.4606 . This usually implies as returns on the benchmark increase, returns on holding HUMANA are expected to decrease at a much lower rate. During a bear market, however, HUMANA INC is likely to outperform the market.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to HUMANA or Insurance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that HUMANA's price will be affected by overall bond market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a HUMANA bond's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.

HUMANA INC has an alpha of 0.0414, implying that it can generate a 0.0414 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |

Returns |

## What Drives a HUMANA Price Volatility?

Several factors can influence a bond's market volatility:### Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.### Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.### The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.## HUMANA Bond Risk Measures

Assuming the 90 days trading horizon the coefficient of variation of HUMANA is -6611.73. The daily returns are distributed with a variance of 0.29 and standard deviation of 0.54. The mean deviation of HUMANA INC is currently at 0.4. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.83

α | Alpha over Dow Jones | 0.04 | |

β | Beta against Dow Jones | -0.46 | |

σ | Overall volatility | 0.54 | |

Ir | Information ratio | -0.07 |

## HUMANA Bond Return Volatility

HUMANA historical daily return volatility represents how much of HUMANA bond's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. HUMANA INC accepts 0.5418% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8312% volatility on return distribution over the 90 days horizon. Performance |

Timeline |

## About HUMANA Volatility

Volatility is a rate at which the price of HUMANA or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of HUMANA may increase or decrease. In other words, similar to HUMANA's beta indicator, it measures the risk of HUMANA and helps estimate the fluctuations that may happen in a short period of time. So if prices of HUMANA fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.

Please read more on our technical analysis page.## 3 ways to utilize HUMANA's volatility to invest better

Higher HUMANA's bond volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of HUMANA INC bond is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. HUMANA INC bond volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of HUMANA INC investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in HUMANA's bond can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of HUMANA's bond relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.

## HUMANA Investment Opportunity

Dow Jones Industrial has a standard deviation of returns of 0.83 and is 1.54 times more volatile than HUMANA INC.**4 percent**of all equities and portfolios are less risky than HUMANA. You can use HUMANA INC to protect your portfolios against small market fluctuations. The bond experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of HUMANA to be traded at 77.94 in 90 days.

### Very good diversification

The correlation between HUMANA INC and DJI is

**-0.24**(i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and DJI in the same portfolio, assuming nothing else is changed.## HUMANA Additional Risk Indicators

The analysis of HUMANA's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in HUMANA's investment and either accepting that risk or mitigating it. Along with some common measures of HUMANA bond's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.

Risk Adjusted Performance | 0.0057 | |||

Market Risk Adjusted Performance | 0.0278 | |||

Mean Deviation | 0.7967 | |||

Semi Deviation | 1.6 | |||

Downside Deviation | 1.63 | |||

Coefficient Of Variation | 86584.94 | |||

Standard Deviation | 1.56 |

Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential bonds, we recommend comparing similar bonds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

## HUMANA Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.

The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against HUMANA as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. HUMANA's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, HUMANA's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to HUMANA INC.

## Other Information on Investing in HUMANA Bond

HUMANA financial ratios help investors to determine whether HUMANA Bond is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in HUMANA with respect to the benefits of owning HUMANA security.