Correlation Between Humana and Barclays Capital
Can any of the company-specific risk be diversified away by investing in both Humana and Barclays Capital 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 Barclays Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and Barclays Capital, you can compare the effects of market volatilities on Humana and Barclays Capital 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 Barclays Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and Barclays Capital.
Diversification Opportunities for Humana and Barclays Capital
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Humana and Barclays is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and Barclays Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays Capital 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 Barclays Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays Capital has no effect on the direction of Humana i.e., Humana and Barclays Capital go up and down completely randomly.
Pair Corralation between Humana and Barclays Capital
If you would invest 1,937 in Barclays Capital on September 20, 2024 and sell it today you would earn a total of 0.00 from holding Barclays Capital or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 4.76% |
Values | Daily Returns |
Humana Inc vs. Barclays Capital
Performance |
Timeline |
Humana Inc |
Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Humana and Barclays Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Humana and Barclays Capital
The main advantage of trading using opposite Humana and Barclays Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, Barclays Capital 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 Barclays Capital will offset losses from the drop in Barclays Capital's long position.Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |