Correlation Between Humana and Macquarie ETF
Can any of the company-specific risk be diversified away by investing in both Humana and Macquarie 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 Macquarie 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 Macquarie ETF Trust, you can compare the effects of market volatilities on Humana and Macquarie 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 Macquarie ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and Macquarie ETF.
Diversification Opportunities for Humana and Macquarie ETF
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Humana and Macquarie is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and Macquarie ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie 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 Macquarie ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie ETF Trust has no effect on the direction of Humana i.e., Humana and Macquarie ETF go up and down completely randomly.
Pair Corralation between Humana and Macquarie ETF
Considering the 90-day investment horizon Humana Inc is expected to under-perform the Macquarie ETF. In addition to that, Humana is 1.52 times more volatile than Macquarie ETF Trust. It trades about -0.04 of its total potential returns per unit of risk. Macquarie ETF Trust is currently generating about 0.06 per unit of volatility. If you would invest 2,494 in Macquarie ETF Trust on September 3, 2024 and sell it today you would earn a total of 470.00 from holding Macquarie ETF Trust or generate 18.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 51.31% |
| Values | Daily Returns |
Humana Inc vs. Macquarie ETF Trust
Performance |
| Timeline |
| Humana Inc |
| Macquarie ETF Trust |
Humana and Macquarie ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and Macquarie ETF
The main advantage of trading using opposite Humana and Macquarie ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, Macquarie 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 Macquarie ETF will offset losses from the drop in Macquarie ETF's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| Macquarie ETF vs. iShares Dividend and | Macquarie ETF vs. Martin Currie Sustainable | Macquarie ETF vs. VictoryShares THB Mid | Macquarie ETF vs. Mast Global Battery |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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