Correlation Between HUMANA and Quaker Investment

Can any of the company-specific risk be diversified away by investing in both HUMANA and Quaker Investment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining HUMANA and Quaker Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between HUMANA INC and Quaker Investment Trust, you can compare the effects of market volatilities on HUMANA and Quaker Investment 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 Quaker Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Quaker Investment.

Diversification Opportunities for HUMANA and Quaker Investment

0.0

Correlation Coefficient

HUMANA  Quaker Investment

Pay attention - limited upside

The 3 months correlation between HUMANA and Quaker is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Quaker Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quaker Investment Trust 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 Quaker Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quaker Investment Trust has no effect on the direction of HUMANA i.e., HUMANA and Quaker Investment go up and down completely randomly.

Pair Corralation between HUMANA and Quaker Investment

If you would invest  1,676  in Quaker Investment Trust on March 28, 2024 and sell it today you would earn a total of  10.00  from holding Quaker Investment Trust or generate 0.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

HUMANA INC  vs.  Quaker Investment Trust

HUMANA INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HUMANA INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, HUMANA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Quaker Investment Trust

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Quaker Investment Trust are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Quaker Investment is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with HUMANA and Quaker Investment

The main advantage of trading using opposite HUMANA and Quaker Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Quaker Investment 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 Quaker Investment will offset losses from the drop in Quaker Investment's long position.

The idea behind HUMANA INC and Quaker Investment Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.