Correlation Between IShares MSCI and Humana
Can any of the company-specific risk be diversified away by investing in both IShares MSCI 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 IShares MSCI and Humana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI Emerging and Humana Inc, you can compare the effects of market volatilities on IShares MSCI 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 IShares MSCI with a short position of Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and Humana.
Diversification Opportunities for IShares MSCI and Humana
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and Humana is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Emerging and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc and IShares MSCI 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 iShares MSCI Emerging 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 IShares MSCI i.e., IShares MSCI and Humana go up and down completely randomly.
Pair Corralation between IShares MSCI and Humana
Considering the 90-day investment horizon iShares MSCI Emerging is expected to under-perform the Humana. But the etf apears to be less risky and, when comparing its historical volatility, iShares MSCI Emerging is 2.55 times less risky than Humana. The etf trades about -0.02 of its potential returns per unit of risk. The Humana Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 28,244 in Humana Inc on September 12, 2024 and sell it today you would earn a total of 338.00 from holding Humana Inc or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares MSCI Emerging vs. Humana Inc
Performance |
| Timeline |
| iShares MSCI Emerging |
| Humana Inc |
IShares MSCI and Humana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and Humana
The main advantage of trading using opposite IShares MSCI and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI 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.| IShares MSCI vs. iShares MSCI EAFE | IShares MSCI vs. iShares China Large Cap | IShares MSCI vs. iShares MSCI Brazil | IShares MSCI vs. iShares Russell 2000 |
| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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