Correlation Between IShares MSCI and HUMANA
Specify exactly 2 symbols:
By analyzing existing cross correlation between iShares MSCI Mexico 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
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IShares and HUMANA is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Mexico 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 Mexico 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 Mexico is expected to generate 2.13 times more return on investment than HUMANA. However, IShares MSCI is 2.13 times more volatile than HUMANA INC. It trades about -0.03 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.09 per unit of risk. If you would invest 5,205 in iShares MSCI Mexico on September 3, 2024 and sell it today you would lose (178.00) from holding iShares MSCI Mexico or give up 3.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
iShares MSCI Mexico vs. HUMANA INC
Performance |
| Timeline |
| iShares MSCI Mexico |
| 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 Malaysia | IShares MSCI vs. iShares MSCI South | IShares MSCI vs. iShares MSCI Spain | IShares MSCI vs. iShares MSCI Australia |
| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |