Correlation Between Fubotv and Humana

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

By analyzing existing cross correlation between Fubotv Inc and Humana Inc, you can compare the effects of market volatilities on Fubotv 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 Fubotv with a short position of Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubotv and Humana.

Diversification Opportunities for Fubotv and Humana

-0.28

Correlation Coefficient

Fubotv  Humana

Very good diversification

The 3 months correlation between Fubotv and Humana is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Fubotv Inc and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc and Fubotv 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 Fubotv Inc 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 Fubotv i.e., Fubotv and Humana go up and down completely randomly.

Pair Corralation between Fubotv and Humana

Given the investment horizon of 90 days Fubotv Inc is expected to generate 1.49 times more return on investment than Humana. However, Fubotv is 1.49 times more volatile than Humana Inc. It trades about 0.15 of its potential returns per unit of risk. Humana Inc is currently generating about 0.01 per unit of risk. If you would invest  261.00  in Fubotv Inc on May 6, 2025 and sell it today you would earn a total of  114.00  from holding Fubotv Inc or generate 43.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Fubotv Inc  vs.  Humana Inc

Fubotv Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fubotv Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent fundamental drivers, Fubotv displayed solid returns over the last few months and may actually be approaching a breakup point.

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. In spite of very healthy basic indicators, Humana is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Fubotv and Humana

The main advantage of trading using opposite Fubotv and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubotv 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.

The idea behind Fubotv Inc and Humana Inc 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.