Correlation Between International Smaller and HUMANA
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By analyzing existing cross correlation between The International Smaller and HUMANA INC, you can compare the effects of market volatilities on International Smaller 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 International Smaller with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Smaller and HUMANA.
Diversification Opportunities for International Smaller and HUMANA
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between International and HUMANA is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding The International Smaller and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and International Smaller 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 The International Smaller 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 International Smaller i.e., International Smaller and HUMANA go up and down completely randomly.
Pair Corralation between International Smaller and HUMANA
Assuming the 90 days horizon The International Smaller is expected to generate 0.78 times more return on investment than HUMANA. However, The International Smaller is 1.27 times less risky than HUMANA. It trades about -0.02 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.21 per unit of risk. If you would invest 1,268 in The International Smaller on August 31, 2024 and sell it today you would lose (6.00) from holding The International Smaller or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
The International Smaller vs. HUMANA INC
Performance |
| Timeline |
| The International Smaller |
| HUMANA INC |
International Smaller and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Smaller and HUMANA
The main advantage of trading using opposite International Smaller and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Smaller 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.| International Smaller vs. Oppenheimer Intl Small | International Smaller vs. T Rowe Price | International Smaller vs. HUMANA INC | International Smaller vs. Aquagold International |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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