Correlation Between Invesco DWA and HUMANA
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By analyzing existing cross correlation between Invesco DWA Emerging and HUMANA INC, you can compare the effects of market volatilities on Invesco DWA 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 Invesco DWA with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco DWA and HUMANA.
Diversification Opportunities for Invesco DWA and HUMANA
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Invesco and HUMANA is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Invesco DWA Emerging and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Invesco DWA 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 Invesco DWA Emerging 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 Invesco DWA i.e., Invesco DWA and HUMANA go up and down completely randomly.
Pair Corralation between Invesco DWA and HUMANA
Considering the 90-day investment horizon Invesco DWA is expected to generate 179.18 times less return on investment than HUMANA. But when comparing it to its historical volatility, Invesco DWA Emerging is 74.77 times less risky than HUMANA. It trades about 0.03 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,074 in HUMANA INC on September 3, 2024 and sell it today you would lose (39.00) from holding HUMANA INC or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.74% |
| Values | Daily Returns |
Invesco DWA Emerging vs. HUMANA INC
Performance |
| Timeline |
| Invesco DWA Emerging |
| HUMANA INC |
Invesco DWA and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco DWA and HUMANA
The main advantage of trading using opposite Invesco DWA and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco DWA 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.| Invesco DWA vs. Invesco DWA Developed | Invesco DWA vs. Invesco DWA Momentum | Invesco DWA vs. Invesco FTSE RAFI | Invesco DWA vs. Invesco DWA SmallCap |
| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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