Correlation Between HUMANA and Dreyfus Smallcap
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By analyzing existing cross correlation between HUMANA INC and Dreyfus Smallcap Stock, you can compare the effects of market volatilities on HUMANA and Dreyfus Smallcap 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 Dreyfus Smallcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Dreyfus Smallcap.
Diversification Opportunities for HUMANA and Dreyfus Smallcap
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and Dreyfus is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Dreyfus Smallcap Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Smallcap Stock 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 Dreyfus Smallcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Smallcap Stock has no effect on the direction of HUMANA i.e., HUMANA and Dreyfus Smallcap go up and down completely randomly.
Pair Corralation between HUMANA and Dreyfus Smallcap
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.74 times more return on investment than Dreyfus Smallcap. However, HUMANA INC is 1.34 times less risky than Dreyfus Smallcap. It trades about 0.29 of its potential returns per unit of risk. Dreyfus Smallcap Stock is currently generating about -0.12 per unit of risk. If you would invest 7,869 in HUMANA INC on March 31, 2024 and sell it today you would earn a total of 313.00 from holding HUMANA INC or generate 3.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
HUMANA INC vs. Dreyfus Smallcap Stock
Performance |
Timeline |
HUMANA INC |
Dreyfus Smallcap Stock |
HUMANA and Dreyfus Smallcap Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HUMANA and Dreyfus Smallcap
The main advantage of trading using opposite HUMANA and Dreyfus Smallcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Dreyfus Smallcap 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 Dreyfus Smallcap will offset losses from the drop in Dreyfus Smallcap's long position.HUMANA vs. AEP TEX INC | HUMANA vs. US BANK NATIONAL | HUMANA vs. Dell Technologies | HUMANA vs. Procter Gamble |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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