Correlation Between Humana and ETF Series
Can any of the company-specific risk be diversified away by investing in both Humana and ETF Series 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 ETF Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and ETF Series Solutions, you can compare the effects of market volatilities on Humana and ETF Series 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 ETF Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and ETF Series.
Diversification Opportunities for Humana and ETF Series
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Humana and ETF is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and ETF Series Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETF Series Solutions 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 ETF Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETF Series Solutions has no effect on the direction of Humana i.e., Humana and ETF Series go up and down completely randomly.
Pair Corralation between Humana and ETF Series
Considering the 90-day investment horizon Humana Inc is expected to generate 20.26 times more return on investment than ETF Series. However, Humana is 20.26 times more volatile than ETF Series Solutions. It trades about 0.21 of its potential returns per unit of risk. ETF Series Solutions is currently generating about 0.09 per unit of risk. If you would invest 25,777 in Humana Inc on August 30, 2024 and sell it today you would earn a total of 3,891 from holding Humana Inc or generate 15.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humana Inc vs. ETF Series Solutions
Performance |
| Timeline |
| Humana Inc |
| ETF Series Solutions |
Humana and ETF Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and ETF Series
The main advantage of trading using opposite Humana and ETF Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, ETF Series 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 ETF Series will offset losses from the drop in ETF Series' long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| ETF Series vs. Valued Advisers Trust | ETF Series vs. Columbia Diversified Fixed | ETF Series vs. Principal Exchange Traded Funds | ETF Series vs. Doubleline Etf Trust |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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