Correlation Between Humana and Invesco
Can any of the company-specific risk be diversified away by investing in both Humana and Invesco 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 Invesco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and Invesco, you can compare the effects of market volatilities on Humana and Invesco 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 Invesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and Invesco.
Diversification Opportunities for Humana and Invesco
Good diversification
The 3 months correlation between Humana and Invesco is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and Invesco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco 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 Invesco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco has no effect on the direction of Humana i.e., Humana and Invesco go up and down completely randomly.
Pair Corralation between Humana and Invesco
Considering the 90-day investment horizon Humana Inc is expected to under-perform the Invesco. In addition to that, Humana is 81.0 times more volatile than Invesco. It trades about -0.04 of its total potential returns per unit of risk. Invesco is currently generating about -0.34 per unit of volatility. If you would invest 7,965 in Invesco on September 12, 2024 and sell it today you would lose (3.00) from holding Invesco or give up 0.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.14% |
| Values | Daily Returns |
Humana Inc vs. Invesco
Performance |
| Timeline |
| Humana Inc |
| Invesco |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Humana and Invesco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and Invesco
The main advantage of trading using opposite Humana and Invesco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, Invesco 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 Invesco will offset losses from the drop in Invesco's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| Invesco vs. Invesco DWA Utilities | Invesco vs. Invesco Dynamic Large | Invesco vs. SCOR PK | Invesco vs. Morningstar Unconstrained Allocation |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |