Correlation Between Lord Abbett and HUMANA
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By analyzing existing cross correlation between Lord Abbett Inflation and HUMANA INC, you can compare the effects of market volatilities on Lord Abbett and HUMANA 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 Lord Abbett with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and HUMANA.
Diversification Opportunities for Lord Abbett and HUMANA
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lord and HUMANA is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Inflation and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Lord Abbett 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 Lord Abbett Inflation are associated (or correlated) with HUMANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUMANA INC has no effect on the direction of Lord Abbett i.e., Lord Abbett and HUMANA go up and down completely randomly.
Pair Corralation between Lord Abbett and HUMANA
Assuming the 90 days horizon Lord Abbett Inflation is expected to generate 0.2 times more return on investment than HUMANA. However, Lord Abbett Inflation is 5.08 times less risky than HUMANA. It trades about 0.07 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.15 per unit of risk. If you would invest 1,154 in Lord Abbett Inflation on August 31, 2024 and sell it today you would earn a total of 8.00 from holding Lord Abbett Inflation or generate 0.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.41% |
Values | Daily Returns |
Lord Abbett Inflation vs. HUMANA INC
Performance |
Timeline |
Lord Abbett Inflation |
HUMANA INC |
Lord Abbett and HUMANA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lord Abbett and HUMANA
The main advantage of trading using opposite Lord Abbett and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, HUMANA 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 HUMANA will offset losses from the drop in HUMANA's long position.Lord Abbett vs. Vanguard Short Term Inflation Protected | Lord Abbett vs. HUMANA INC | Lord Abbett vs. Aquagold International | Lord Abbett vs. Barloworld Ltd ADR |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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