Correlation Between Humana and Barclays

Can any of the company-specific risk be diversified away by investing in both Humana and Barclays 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 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, you can compare the effects of market volatilities on Humana and Barclays 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and Barclays.

Diversification Opportunities for Humana and Barclays

0.0

Correlation Coefficient

Humana  Barclays

Pay attention - limited upside

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

Pair Corralation between Humana and Barclays

If you would invest (100.00) in Barclays on September 22, 2024 and sell it today you would earn a total of  100.00  from holding Barclays or generate -100.0% return on investment over 90 days.

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

Humana Inc  vs.  Barclays

Humana Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Humana Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Etf's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Barclays

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Barclays has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Barclays is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Humana and Barclays

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

The idea behind Humana Inc and Barclays 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.