Correlation Between IShares ESG and HUMANA
Specify exactly 2 symbols:
By analyzing existing cross correlation between iShares ESG Aware and HUMANA INC, you can compare the effects of market volatilities on IShares ESG 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 ESG with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares ESG and HUMANA.
Diversification Opportunities for IShares ESG and HUMANA
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and HUMANA is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding iShares ESG Aware and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and IShares ESG 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 ESG Aware 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 ESG i.e., IShares ESG and HUMANA go up and down completely randomly.
Pair Corralation between IShares ESG and HUMANA
Given the investment horizon of 90 days iShares ESG Aware is expected to generate 1.01 times more return on investment than HUMANA. However, IShares ESG is 1.01 times more volatile than HUMANA INC. It trades about -0.17 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.23 per unit of risk. If you would invest 3,597 in iShares ESG Aware on August 24, 2024 and sell it today you would lose (144.00) from holding iShares ESG Aware or give up 4.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
iShares ESG Aware vs. HUMANA INC
Performance |
| Timeline |
| iShares ESG Aware |
| HUMANA INC |
IShares ESG and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares ESG and HUMANA
The main advantage of trading using opposite IShares ESG and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares ESG 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 ESG vs. iShares ESG Aware | IShares ESG vs. iShares ESG Aware | IShares ESG vs. iShares ESG Aware | IShares ESG vs. iShares ESG USD |
| HUMANA vs. Western Digital | HUMANA vs. Arrow Electronics | HUMANA vs. Anheuser Busch Inbev | HUMANA vs. Keurig Dr Pepper |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |