Correlation Between Global X and HUMANA
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By analyzing existing cross correlation between Global X MSCI and HUMANA INC, you can compare the effects of market volatilities on Global X 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 Global X with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and HUMANA.
Diversification Opportunities for Global X and HUMANA
Significant diversification
The 3 months correlation between Global and HUMANA is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Global X MSCI and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Global X 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 Global X MSCI 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 Global X i.e., Global X and HUMANA go up and down completely randomly.
Pair Corralation between Global X and HUMANA
Considering the 90-day investment horizon Global X MSCI is expected to generate 0.87 times more return on investment than HUMANA. However, Global X MSCI is 1.15 times less risky than HUMANA. It trades about 0.23 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.18 per unit of risk. If you would invest 2,278 in Global X MSCI on September 2, 2024 and sell it today you would earn a total of 112.00 from holding Global X MSCI or generate 4.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Global X MSCI vs. HUMANA INC
Performance |
| Timeline |
| Global X MSCI |
| HUMANA INC |
Global X and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and HUMANA
The main advantage of trading using opposite Global X and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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.| Global X vs. iShares MSCI Peru | Global X vs. iShares MSCI Chile | Global X vs. iShares MSCI Thailand | Global X vs. Global X MSCI |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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