Correlation Between Humana and Harbor ETF
Can any of the company-specific risk be diversified away by investing in both Humana and Harbor ETF 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 Harbor ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and Harbor ETF Trust, you can compare the effects of market volatilities on Humana and Harbor ETF 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 Harbor ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and Harbor ETF.
Diversification Opportunities for Humana and Harbor ETF
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Humana and Harbor is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and Harbor ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor ETF Trust 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 Harbor ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor ETF Trust has no effect on the direction of Humana i.e., Humana and Harbor ETF go up and down completely randomly.
Pair Corralation between Humana and Harbor ETF
Considering the 90-day investment horizon Humana Inc is expected to generate 3.46 times more return on investment than Harbor ETF. However, Humana is 3.46 times more volatile than Harbor ETF Trust. It trades about 0.04 of its potential returns per unit of risk. Harbor ETF Trust is currently generating about 0.07 per unit of risk. If you would invest 28,244 in Humana Inc on September 12, 2024 and sell it today you would earn a total of 338.00 from holding Humana Inc or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Humana Inc vs. Harbor ETF Trust
Performance |
| Timeline |
| Humana Inc |
| Harbor ETF Trust |
Humana and Harbor ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and Harbor ETF
The main advantage of trading using opposite Humana and Harbor ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, Harbor ETF 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 Harbor ETF will offset losses from the drop in Harbor ETF's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| Harbor ETF vs. FT Vest Equity | Harbor ETF vs. Northern Lights | Harbor ETF vs. Dimensional International High | Harbor ETF vs. JPMorgan Fundamental Data |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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