Correlation Between Humana and FlexShares Ready
Can any of the company-specific risk be diversified away by investing in both Humana and FlexShares Ready 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 FlexShares Ready into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and FlexShares Ready Access, you can compare the effects of market volatilities on Humana and FlexShares Ready 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 FlexShares Ready. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and FlexShares Ready.
Diversification Opportunities for Humana and FlexShares Ready
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Humana and FlexShares is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and FlexShares Ready Access in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FlexShares Ready Access 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 FlexShares Ready. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FlexShares Ready Access has no effect on the direction of Humana i.e., Humana and FlexShares Ready go up and down completely randomly.
Pair Corralation between Humana and FlexShares Ready
Considering the 90-day investment horizon Humana Inc is expected to generate 125.54 times more return on investment than FlexShares Ready. However, Humana is 125.54 times more volatile than FlexShares Ready Access. It trades about 0.2 of its potential returns per unit of risk. FlexShares Ready Access is currently generating about 0.71 per unit of risk. If you would invest 25,865 in Humana Inc on August 24, 2024 and sell it today you would earn a total of 3,706 from holding Humana Inc or generate 14.33% 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. FlexShares Ready Access
Performance |
| Timeline |
| Humana Inc |
| FlexShares Ready Access |
Humana and FlexShares Ready Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and FlexShares Ready
The main advantage of trading using opposite Humana and FlexShares Ready positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, FlexShares Ready 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 FlexShares Ready will offset losses from the drop in FlexShares Ready's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| FlexShares Ready vs. First Trust Low | FlexShares Ready vs. First Trust Senior | FlexShares Ready vs. First Trust TCW | FlexShares Ready vs. First Trust Tactical |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |