Correlation Between Humana and IShares IBonds
Can any of the company-specific risk be diversified away by investing in both Humana and IShares IBonds 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 IShares IBonds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and iShares iBonds 2025, you can compare the effects of market volatilities on Humana and IShares IBonds 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 IShares IBonds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and IShares IBonds.
Diversification Opportunities for Humana and IShares IBonds
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Humana and IShares is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and iShares iBonds 2025 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares iBonds 2025 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 IShares IBonds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares iBonds 2025 has no effect on the direction of Humana i.e., Humana and IShares IBonds go up and down completely randomly.
Pair Corralation between Humana and IShares IBonds
Considering the 90-day investment horizon Humana Inc is expected to generate 37.37 times more return on investment than IShares IBonds. However, Humana is 37.37 times more volatile than iShares iBonds 2025. It trades about 0.25 of its potential returns per unit of risk. iShares iBonds 2025 is currently generating about 0.28 per unit of risk. If you would invest 25,555 in Humana Inc on September 3, 2024 and sell it today you would earn a total of 4,083 from holding Humana Inc or generate 15.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humana Inc vs. iShares iBonds 2025
Performance |
| Timeline |
| Humana Inc |
| iShares iBonds 2025 |
Humana and IShares IBonds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and IShares IBonds
The main advantage of trading using opposite Humana and IShares IBonds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, IShares IBonds 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 IShares IBonds will offset losses from the drop in IShares IBonds' long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| IShares IBonds vs. iShares iBonds 2024 | IShares IBonds vs. iShares iBonds Dec | IShares IBonds vs. iShares iBonds 2026 | IShares IBonds vs. iShares iBonds Dec |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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