Correlation Between HUMANA and Invesco High
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By analyzing existing cross correlation between HUMANA INC and Invesco High Yield, you can compare the effects of market volatilities on HUMANA and Invesco High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Invesco High.
Diversification Opportunities for HUMANA and Invesco High
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Invesco is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Invesco High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco High Yield 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco High Yield has no effect on the direction of HUMANA i.e., HUMANA and Invesco High go up and down completely randomly.
Pair Corralation between HUMANA and Invesco High
Assuming the 90 days trading horizon HUMANA INC is expected to generate 252.75 times more return on investment than Invesco High. However, HUMANA is 252.75 times more volatile than Invesco High Yield. It trades about 0.07 of its potential returns per unit of risk. Invesco High Yield is currently generating about 0.1 per unit of risk. If you would invest 7,962 in HUMANA INC on August 24, 2024 and sell it today you would lose (267.00) from holding HUMANA INC or give up 3.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.94% |
| Values | Daily Returns |
HUMANA INC vs. Invesco High Yield
Performance |
| Timeline |
| HUMANA INC |
| Invesco High Yield |
HUMANA and Invesco High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Invesco High
The main advantage of trading using opposite HUMANA and Invesco High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Invesco High 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 High will offset losses from the drop in Invesco High's long position.| HUMANA vs. Western Digital | HUMANA vs. Arrow Electronics | HUMANA vs. Anheuser Busch Inbev | HUMANA vs. Keurig Dr Pepper |
| Invesco High vs. Blackrock High Yield | Invesco High vs. HUMANA INC | Invesco High vs. Aquagold International | Invesco High vs. Barloworld Ltd ADR |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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