Correlation Between HUMANA and Invesco Balanced-risk
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By analyzing existing cross correlation between HUMANA INC and Invesco Balanced Risk Allocation, you can compare the effects of market volatilities on HUMANA and Invesco Balanced-risk 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 Invesco Balanced-risk. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Invesco Balanced-risk.
Diversification Opportunities for HUMANA and Invesco Balanced-risk
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Invesco is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Invesco Balanced Risk Allocati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Balanced Risk 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 Invesco Balanced-risk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Balanced Risk has no effect on the direction of HUMANA i.e., HUMANA and Invesco Balanced-risk go up and down completely randomly.
Pair Corralation between HUMANA and Invesco Balanced-risk
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Invesco Balanced-risk. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.1 times less risky than Invesco Balanced-risk. The bond trades about -0.11 of its potential returns per unit of risk. The Invesco Balanced Risk Allocation is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 934.00 in Invesco Balanced Risk Allocation on August 28, 2024 and sell it today you would lose (6.00) from holding Invesco Balanced Risk Allocation or give up 0.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
HUMANA INC vs. Invesco Balanced Risk Allocati
Performance |
| Timeline |
| HUMANA INC |
| Invesco Balanced Risk |
HUMANA and Invesco Balanced-risk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Invesco Balanced-risk
The main advantage of trading using opposite HUMANA and Invesco Balanced-risk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Invesco Balanced-risk 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 Invesco Balanced-risk will offset losses from the drop in Invesco Balanced-risk's long position.| HUMANA vs. Zhihu Inc ADR | HUMANA vs. National CineMedia | HUMANA vs. Comstock Holding Companies | HUMANA vs. PennantPark Investment |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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