Correlation Between Humana and WGRO
Can any of the company-specific risk be diversified away by investing in both Humana and WGRO 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 WGRO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and WGRO, you can compare the effects of market volatilities on Humana and WGRO 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 WGRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and WGRO.
Diversification Opportunities for Humana and WGRO
Very good diversification
The 3 months correlation between Humana and WGRO is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and WGRO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WGRO 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 WGRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WGRO has no effect on the direction of Humana i.e., Humana and WGRO go up and down completely randomly.
Pair Corralation between Humana and WGRO
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 | 4.35% |
| Values | Daily Returns |
Humana Inc vs. WGRO
Performance |
| Timeline |
| Humana Inc |
| WGRO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Humana and WGRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and WGRO
The main advantage of trading using opposite Humana and WGRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, WGRO 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 WGRO will offset losses from the drop in WGRO's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| WGRO vs. iShares Small Cap | WGRO vs. Virtus ETF Trust | WGRO vs. Amplify Thematic All Stars | WGRO vs. ProShares Nasdaq 100 Dorsey |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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