Correlation Between Humana and VanEck Junior
Can any of the company-specific risk be diversified away by investing in both Humana and VanEck Junior 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 VanEck Junior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and VanEck Junior Gold, you can compare the effects of market volatilities on Humana and VanEck Junior 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 VanEck Junior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and VanEck Junior.
Diversification Opportunities for Humana and VanEck Junior
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Humana and VanEck is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and VanEck Junior Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Junior Gold 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 VanEck Junior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Junior Gold has no effect on the direction of Humana i.e., Humana and VanEck Junior go up and down completely randomly.
Pair Corralation between Humana and VanEck Junior
Considering the 90-day investment horizon Humana Inc is expected to generate 1.38 times more return on investment than VanEck Junior. However, Humana is 1.38 times more volatile than VanEck Junior Gold. It trades about 0.24 of its potential returns per unit of risk. VanEck Junior Gold is currently generating about -0.23 per unit of risk. If you would invest 26,109 in Humana Inc on August 28, 2024 and sell it today you would earn a total of 4,309 from holding Humana Inc or generate 16.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humana Inc vs. VanEck Junior Gold
Performance |
| Timeline |
| Humana Inc |
| VanEck Junior Gold |
Humana and VanEck Junior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and VanEck Junior
The main advantage of trading using opposite Humana and VanEck Junior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, VanEck Junior 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 VanEck Junior will offset losses from the drop in VanEck Junior's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| VanEck Junior vs. VanEck Gold Miners | VanEck Junior vs. Global X Silver | VanEck Junior vs. Amplify ETF Trust | VanEck Junior vs. Pan American Silver |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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