Correlation Between Humana and IXSE
Can any of the company-specific risk be diversified away by investing in both Humana and IXSE 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 IXSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and IXSE, you can compare the effects of market volatilities on Humana and IXSE 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 IXSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and IXSE.
Diversification Opportunities for Humana and IXSE
Excellent diversification
The 3 months correlation between Humana and IXSE is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and IXSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IXSE 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 IXSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IXSE has no effect on the direction of Humana i.e., Humana and IXSE go up and down completely randomly.
Pair Corralation between Humana and IXSE
If you would invest 26,109 in Humana Inc on August 27, 2024 and sell it today you would earn a total of 3,702 from holding Humana Inc or generate 14.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Humana Inc vs. IXSE
Performance |
| Timeline |
| Humana Inc |
| IXSE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Humana and IXSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and IXSE
The main advantage of trading using opposite Humana and IXSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, IXSE 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 IXSE will offset losses from the drop in IXSE's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| IXSE vs. Franklin FTSE India | IXSE vs. VanEck India Growth | IXSE vs. First Trust India | IXSE vs. Columbia India Consumer |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |