Correlation Between Humana and Touchstone ETF
Can any of the company-specific risk be diversified away by investing in both Humana and Touchstone 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 Touchstone 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 Touchstone ETF Trust, you can compare the effects of market volatilities on Humana and Touchstone 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 Touchstone ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and Touchstone ETF.
Diversification Opportunities for Humana and Touchstone ETF
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Humana and Touchstone is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and Touchstone ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone 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 Touchstone ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone ETF Trust has no effect on the direction of Humana i.e., Humana and Touchstone ETF go up and down completely randomly.
Pair Corralation between Humana and Touchstone ETF
Considering the 90-day investment horizon Humana Inc is expected to generate 33.21 times more return on investment than Touchstone ETF. However, Humana is 33.21 times more volatile than Touchstone ETF Trust. It trades about 0.19 of its potential returns per unit of risk. Touchstone ETF Trust is currently generating about 0.18 per unit of risk. If you would invest 26,109 in Humana Inc on August 29, 2024 and sell it today you would earn a total of 3,450 from holding Humana Inc or generate 13.21% 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. Touchstone ETF Trust
Performance |
| Timeline |
| Humana Inc |
| Touchstone ETF Trust |
Humana and Touchstone ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and Touchstone ETF
The main advantage of trading using opposite Humana and Touchstone ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, Touchstone 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 Touchstone ETF will offset losses from the drop in Touchstone ETF's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| Touchstone ETF vs. Rbb Fund | Touchstone ETF vs. US Treasury 12 | Touchstone ETF vs. Rbb Fund | Touchstone ETF vs. Rbb Fund |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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