Correlation Between Humana and WisdomTree Japan
Can any of the company-specific risk be diversified away by investing in both Humana and WisdomTree Japan 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 WisdomTree Japan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and WisdomTree Japan Hedged, you can compare the effects of market volatilities on Humana and WisdomTree Japan 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 WisdomTree Japan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and WisdomTree Japan.
Diversification Opportunities for Humana and WisdomTree Japan
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Humana and WisdomTree is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and WisdomTree Japan Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Japan Hedged 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 WisdomTree Japan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Japan Hedged has no effect on the direction of Humana i.e., Humana and WisdomTree Japan go up and down completely randomly.
Pair Corralation between Humana and WisdomTree Japan
Considering the 90-day investment horizon Humana Inc is expected to under-perform the WisdomTree Japan. In addition to that, Humana is 3.27 times more volatile than WisdomTree Japan Hedged. It trades about -0.08 of its total potential returns per unit of risk. WisdomTree Japan Hedged is currently generating about 0.24 per unit of volatility. If you would invest 4,359 in WisdomTree Japan Hedged on November 11, 2025 and sell it today you would earn a total of 643.00 from holding WisdomTree Japan Hedged or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.1% |
| Values | Daily Returns |
Humana Inc vs. WisdomTree Japan Hedged
Performance |
| Timeline |
| Humana Inc |
| WisdomTree Japan Hedged |
Risk-Adjusted Performance
Solid
Weak | Strong |
Humana and WisdomTree Japan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and WisdomTree Japan
The main advantage of trading using opposite Humana and WisdomTree Japan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, WisdomTree Japan 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 WisdomTree Japan will offset losses from the drop in WisdomTree Japan's long position.| Humana vs. GE HealthCare Technologies | Humana vs. ResMed Inc | Humana vs. IQVIA Holdings | Humana vs. Alcon AG |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |