Correlation Between Harbor ETF and Humana
Can any of the company-specific risk be diversified away by investing in both Harbor ETF and Humana 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 Harbor ETF and Humana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harbor ETF Trust and Humana Inc, you can compare the effects of market volatilities on Harbor ETF 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 Harbor ETF with a short position of Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor ETF and Humana.
Diversification Opportunities for Harbor ETF and Humana
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harbor and Humana is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Harbor ETF Trust and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc and Harbor ETF 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 Harbor ETF Trust 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 Harbor ETF i.e., Harbor ETF and Humana go up and down completely randomly.
Pair Corralation between Harbor ETF and Humana
Given the investment horizon of 90 days Harbor ETF is expected to generate 1.73 times less return on investment than Humana. But when comparing it to its historical volatility, Harbor ETF Trust is 3.46 times less risky than Humana. It trades about 0.07 of its potential returns per unit of risk. Humana Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 28,244 in Humana Inc on September 12, 2024 and sell it today you would earn a total of 338.00 from holding Humana Inc or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Harbor ETF Trust vs. Humana Inc
Performance |
| Timeline |
| Harbor ETF Trust |
| Humana Inc |
Harbor ETF and Humana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbor ETF and Humana
The main advantage of trading using opposite Harbor ETF and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbor ETF 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.| Harbor ETF vs. FT Vest Equity | Harbor ETF vs. Northern Lights | Harbor ETF vs. Dimensional International High | Harbor ETF vs. JPMorgan Fundamental Data |
| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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