Correlation Between HUMANA and WisdomTree High
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By analyzing existing cross correlation between HUMANA INC and WisdomTree High Dividend, you can compare the effects of market volatilities on HUMANA and WisdomTree 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 WisdomTree High. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and WisdomTree High.
Diversification Opportunities for HUMANA and WisdomTree High
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and WisdomTree is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and WisdomTree High Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree High Dividend 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 WisdomTree High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree High Dividend has no effect on the direction of HUMANA i.e., HUMANA and WisdomTree High go up and down completely randomly.
Pair Corralation between HUMANA and WisdomTree High
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the WisdomTree High. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.26 times less risky than WisdomTree High. The bond trades about -0.07 of its potential returns per unit of risk. The WisdomTree High Dividend is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 9,489 in WisdomTree High Dividend on August 29, 2024 and sell it today you would earn a total of 559.00 from holding WisdomTree High Dividend or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
HUMANA INC vs. WisdomTree High Dividend
Performance |
| Timeline |
| HUMANA INC |
| WisdomTree High Dividend |
HUMANA and WisdomTree High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and WisdomTree High
The main advantage of trading using opposite HUMANA and WisdomTree High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, WisdomTree 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 WisdomTree High will offset losses from the drop in WisdomTree High's long position.The idea behind HUMANA INC and WisdomTree High Dividend pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| WisdomTree High vs. iShares MSCI USA | WisdomTree High vs. ABIVAX Socit Anonyme | WisdomTree High vs. HUMANA INC | WisdomTree High vs. SCOR PK |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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