Correlation Between HUMANA and Gold And

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

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

Diversification Opportunities for HUMANA and Gold And

0.16

Correlation Coefficient

HUMANA  Gold And

Average diversification

The 3 months correlation between HUMANA and Gold is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Gold And Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold And Precious 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 Gold And. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold And Precious has no effect on the direction of HUMANA i.e., HUMANA and Gold And go up and down completely randomly.

Pair Corralation between HUMANA and Gold And

Assuming the 90 days trading horizon HUMANA is expected to generate 7.21 times less return on investment than Gold And. But when comparing it to its historical volatility, HUMANA INC is 2.97 times less risky than Gold And. It trades about 0.02 of its potential returns per unit of risk. Gold And Precious is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  893.00  in Gold And Precious on October 4, 2024 and sell it today you would earn a total of  286.00  from holding Gold And Precious or generate 32.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	97.58%
Values	Daily Returns

HUMANA INC  vs.  Gold And Precious

HUMANA INC

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in HUMANA INC are ranked lower than 3 (%) 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 latest stock price disturbance, may contribute to short-term losses for the investors.

Gold And Precious

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gold And Precious has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with HUMANA and Gold And

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

The idea behind HUMANA INC and Gold And Precious 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.