Correlation Between Humana and Invesco Variable
Can any of the company-specific risk be diversified away by investing in both Humana and Invesco Variable 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 Variable 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 Variable Rate, you can compare the effects of market volatilities on Humana and Invesco Variable 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 Variable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and Invesco Variable.
Diversification Opportunities for Humana and Invesco Variable
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Humana and Invesco is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and Invesco Variable Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Variable Rate 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 Variable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Variable Rate has no effect on the direction of Humana i.e., Humana and Invesco Variable go up and down completely randomly.
Pair Corralation between Humana and Invesco Variable
Considering the 90-day investment horizon Humana Inc is expected to under-perform the Invesco Variable. In addition to that, Humana is 16.76 times more volatile than Invesco Variable Rate. It trades about -0.02 of its total potential returns per unit of risk. Invesco Variable Rate is currently generating about 0.09 per unit of volatility. If you would invest 2,418 in Invesco Variable Rate on August 30, 2024 and sell it today you would earn a total of 22.00 from holding Invesco Variable Rate or generate 0.91% 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. Invesco Variable Rate
Performance |
| Timeline |
| Humana Inc |
| Invesco Variable Rate |
Humana and Invesco Variable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and Invesco Variable
The main advantage of trading using opposite Humana and Invesco Variable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, Invesco Variable 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 Variable will offset losses from the drop in Invesco Variable's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| Invesco Variable vs. VanEck Preferred Securities | Invesco Variable vs. First Trust Preferred | Invesco Variable vs. SPDR ICE Preferred | Invesco Variable vs. Global X SuperIncome |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |