Correlation Between HUMANA and Pimco Rae
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By analyzing existing cross correlation between HUMANA INC and Pimco Rae Worldwide, you can compare the effects of market volatilities on HUMANA and Pimco Rae 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 Pimco Rae. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Pimco Rae.
Diversification Opportunities for HUMANA and Pimco Rae
Very good diversification
The 3 months correlation between HUMANA and Pimco is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Pimco Rae Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Rae Worldwide 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 Pimco Rae. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Rae Worldwide has no effect on the direction of HUMANA i.e., HUMANA and Pimco Rae go up and down completely randomly.
Pair Corralation between HUMANA and Pimco Rae
Assuming the 90 days trading horizon HUMANA INC is expected to generate 3.14 times more return on investment than Pimco Rae. However, HUMANA is 3.14 times more volatile than Pimco Rae Worldwide. It trades about 0.01 of its potential returns per unit of risk. Pimco Rae Worldwide is currently generating about -0.04 per unit of risk. If you would invest 7,930 in HUMANA INC on February 28, 2024 and sell it today you would earn a total of 28.00 from holding HUMANA INC or generate 0.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 97.56% |
Values | Daily Returns |
HUMANA INC vs. Pimco Rae Worldwide
Performance |
Timeline |
HUMANA INC |
Pimco Rae Worldwide |
HUMANA and Pimco Rae Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HUMANA and Pimco Rae
The main advantage of trading using opposite HUMANA and Pimco Rae positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Pimco Rae 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 Pimco Rae will offset losses from the drop in Pimco Rae's long position.HUMANA vs. AEP TEX INC | HUMANA vs. US BANK NATIONAL | HUMANA vs. International Paper | HUMANA vs. Hudson Pacific Properties |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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