Correlation Between IShares MSCI and HUMANA
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By analyzing existing cross correlation between iShares MSCI USA and HUMANA INC, you can compare the effects of market volatilities on IShares MSCI 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 IShares MSCI with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and HUMANA.
Diversification Opportunities for IShares MSCI and HUMANA
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and HUMANA is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI USA and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and IShares MSCI 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 iShares MSCI USA 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 IShares MSCI i.e., IShares MSCI and HUMANA go up and down completely randomly.
Pair Corralation between IShares MSCI and HUMANA
Given the investment horizon of 90 days iShares MSCI USA is expected to generate 1.23 times more return on investment than HUMANA. However, IShares MSCI is 1.23 times more volatile than HUMANA INC. It trades about 0.14 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.07 per unit of risk. If you would invest 18,009 in iShares MSCI USA on August 29, 2024 and sell it today you would earn a total of 446.00 from holding iShares MSCI USA or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
iShares MSCI USA vs. HUMANA INC
Performance |
| Timeline |
| iShares MSCI USA |
| HUMANA INC |
IShares MSCI and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and HUMANA
The main advantage of trading using opposite IShares MSCI and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI 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.| IShares MSCI vs. iShares MSCI USA | IShares MSCI vs. iShares MSCI USA | IShares MSCI vs. iShares MSCI USA | IShares MSCI vs. Invesco SP 500 |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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