Correlation Between HUMANA and Tortoise

Can any of the company-specific risk be diversified away by investing in both HUMANA and Tortoise 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 Tortoise into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for HUMANA and Tortoise

0.0

Correlation Coefficient

HUMANA  Tortoise

Pay attention - limited upside

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

Pair Corralation between HUMANA and Tortoise

If you would invest  7,977  in HUMANA INC on December 25, 2024 and sell it today you would earn a total of  220.00  from holding HUMANA INC or generate 2.76% return on investment over 90 days.

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

HUMANA INC  vs.  Tortoise

HUMANA INC

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in HUMANA INC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. 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.

Tortoise

Risk-Adjusted Performance

Very Weak

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

Pair Trading with HUMANA and Tortoise

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

The idea behind HUMANA INC and Tortoise 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.