Correlation Between Humana and Fundo De

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

By analyzing existing cross correlation between Humana Inc and Fundo de Investimento, you can compare the effects of market volatilities on Humana and Fundo De 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 Fundo De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and Fundo De.

Diversification Opportunities for Humana and Fundo De

-0.47

Correlation Coefficient

Humana  Fundo De

Very good diversification

The 3 months correlation between Humana and Fundo is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and Fundo de Investimento in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundo de Investimento 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 Fundo De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundo de Investimento has no effect on the direction of Humana i.e., Humana and Fundo De go up and down completely randomly.

Pair Corralation between Humana and Fundo De

Assuming the 90 days trading horizon Humana Inc is expected to under-perform the Fundo De. In addition to that, Humana is 3.23 times more volatile than Fundo de Investimento. It trades about -0.09 of its total potential returns per unit of risk. Fundo de Investimento is currently generating about 0.18 per unit of volatility. If you would invest  4,394  in Fundo de Investimento on April 24, 2025 and sell it today you would earn a total of  392.00  from holding Fundo de Investimento or generate 8.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Humana Inc  vs.  Fundo de Investimento

Humana Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Humana Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Fundo de Investimento

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fundo de Investimento are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak technical and fundamental indicators, Fundo De may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Humana and Fundo De

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

The idea behind Humana Inc and Fundo de Investimento 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.