Correlation Between Humana and ClearShares Ultra
Can any of the company-specific risk be diversified away by investing in both Humana and ClearShares Ultra 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 ClearShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and ClearShares Ultra Short Maturity, you can compare the effects of market volatilities on Humana and ClearShares Ultra 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 ClearShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and ClearShares Ultra.
Diversification Opportunities for Humana and ClearShares Ultra
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Humana and ClearShares is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and ClearShares Ultra Short Maturi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClearShares Ultra Short 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 ClearShares Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClearShares Ultra Short has no effect on the direction of Humana i.e., Humana and ClearShares Ultra go up and down completely randomly.
Pair Corralation between Humana and ClearShares Ultra
Considering the 90-day investment horizon Humana Inc is expected to generate 181.42 times more return on investment than ClearShares Ultra. However, Humana is 181.42 times more volatile than ClearShares Ultra Short Maturity. It trades about 0.18 of its potential returns per unit of risk. ClearShares Ultra Short Maturity is currently generating about 0.99 per unit of risk. If you would invest 26,231 in Humana Inc on August 23, 2024 and sell it today you would earn a total of 3,340 from holding Humana Inc or generate 12.73% 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. ClearShares Ultra Short Maturi
Performance |
| Timeline |
| Humana Inc |
| ClearShares Ultra Short |
Humana and ClearShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and ClearShares Ultra
The main advantage of trading using opposite Humana and ClearShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, ClearShares Ultra 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 ClearShares Ultra will offset losses from the drop in ClearShares Ultra's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| ClearShares Ultra vs. Valued Advisers Trust | ClearShares Ultra vs. Xtrackers California Municipal | ClearShares Ultra vs. Principal Exchange Traded Funds | ClearShares Ultra vs. PIMCO Enhanced Short |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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