Correlation Between Humana and Xtrackers Harvest
Can any of the company-specific risk be diversified away by investing in both Humana and Xtrackers Harvest 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 Humana and Xtrackers Harvest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and Xtrackers Harvest CSI, you can compare the effects of market volatilities on Humana and Xtrackers Harvest 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 Humana with a short position of Xtrackers Harvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and Xtrackers Harvest.
Diversification Opportunities for Humana and Xtrackers Harvest
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Humana and Xtrackers is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and Xtrackers Harvest CSI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers Harvest CSI and Humana 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 Humana Inc are associated (or correlated) with Xtrackers Harvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers Harvest CSI has no effect on the direction of Humana i.e., Humana and Xtrackers Harvest go up and down completely randomly.
Pair Corralation between Humana and Xtrackers Harvest
Considering the 90-day investment horizon Humana Inc is expected to generate 1.43 times more return on investment than Xtrackers Harvest. However, Humana is 1.43 times more volatile than Xtrackers Harvest CSI. It trades about 0.2 of its potential returns per unit of risk. Xtrackers Harvest CSI is currently generating about -0.01 per unit of risk. If you would invest 25,865 in Humana Inc on August 24, 2024 and sell it today you would earn a total of 3,706 from holding Humana Inc or generate 14.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humana Inc vs. Xtrackers Harvest CSI
Performance |
| Timeline |
| Humana Inc |
| Xtrackers Harvest CSI |
Humana and Xtrackers Harvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and Xtrackers Harvest
The main advantage of trading using opposite Humana and Xtrackers Harvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, Xtrackers Harvest 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 Xtrackers Harvest will offset losses from the drop in Xtrackers Harvest's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| Xtrackers Harvest vs. iShares MSCI China | Xtrackers Harvest vs. Xtrackers Harvest CSI | Xtrackers Harvest vs. Direxion Daily CSI | Xtrackers Harvest vs. KraneShares CSI China |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Directory Find actively traded commodities issued by global exchanges |