Correlation Between Humana and Virtus ETF
Can any of the company-specific risk be diversified away by investing in both Humana and Virtus 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 Virtus 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 Virtus ETF Trust, you can compare the effects of market volatilities on Humana and Virtus 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 Virtus ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and Virtus ETF.
Diversification Opportunities for Humana and Virtus ETF
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Humana and Virtus is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and Virtus ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus 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 Virtus ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus ETF Trust has no effect on the direction of Humana i.e., Humana and Virtus ETF go up and down completely randomly.
Pair Corralation between Humana and Virtus ETF
Considering the 90-day investment horizon Humana Inc is expected to generate 38.16 times more return on investment than Virtus ETF. However, Humana is 38.16 times more volatile than Virtus ETF Trust. It trades about 0.21 of its potential returns per unit of risk. Virtus ETF Trust is currently generating about 0.24 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 | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Humana Inc vs. Virtus ETF Trust
Performance |
| Timeline |
| Humana Inc |
| Virtus ETF Trust |
Humana and Virtus ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and Virtus ETF
The main advantage of trading using opposite Humana and Virtus ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, Virtus 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 Virtus ETF will offset losses from the drop in Virtus ETF's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| Virtus ETF vs. Valued Advisers Trust | Virtus ETF vs. Columbia Diversified Fixed | Virtus ETF vs. Principal Exchange Traded Funds | Virtus ETF 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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