Correlation Between Voya Floating and HUMANA
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By analyzing existing cross correlation between Voya Floating Rate and HUMANA INC, you can compare the effects of market volatilities on Voya Floating and HUMANA 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 Voya Floating with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Floating and HUMANA.
Diversification Opportunities for Voya Floating and HUMANA
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Voya and HUMANA is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Voya Floating Rate and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Voya Floating 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 Voya Floating Rate are associated (or correlated) with HUMANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUMANA INC has no effect on the direction of Voya Floating i.e., Voya Floating and HUMANA go up and down completely randomly.
Pair Corralation between Voya Floating and HUMANA
Assuming the 90 days horizon Voya Floating is expected to generate 9.1 times less return on investment than HUMANA. But when comparing it to its historical volatility, Voya Floating Rate is 7.87 times less risky than HUMANA. It trades about 0.22 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 7,944 in HUMANA INC on October 24, 2024 and sell it today you would earn a total of 500.00 from holding HUMANA INC or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Voya Floating Rate vs. HUMANA INC
Performance |
| Timeline |
| Voya Floating Rate |
| HUMANA INC |
Voya Floating and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Floating and HUMANA
The main advantage of trading using opposite Voya Floating and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Floating position performs unexpectedly, HUMANA 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 HUMANA will offset losses from the drop in HUMANA's long position.| Voya Floating vs. Blackrock Global Longshort | Voya Floating vs. Prudential Short Duration | Voya Floating vs. Leader Short Term Bond | Voya Floating vs. Cmg Ultra Short |
| HUMANA vs. Daily Journal Corp | HUMANA vs. Pearson PLC ADR | HUMANA vs. Gannett Co | HUMANA vs. John Wiley Sons |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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