Correlation Between HUMANA and Invesco Exchange
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By analyzing existing cross correlation between HUMANA INC and Invesco Exchange Traded, you can compare the effects of market volatilities on HUMANA and Invesco Exchange 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 Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Invesco Exchange.
Diversification Opportunities for HUMANA and Invesco Exchange
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Invesco is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Invesco Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Exchange Traded 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 Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Exchange Traded has no effect on the direction of HUMANA i.e., HUMANA and Invesco Exchange go up and down completely randomly.
Pair Corralation between HUMANA and Invesco Exchange
Assuming the 90 days trading horizon HUMANA INC is expected to generate 111.73 times more return on investment than Invesco Exchange. However, HUMANA is 111.73 times more volatile than Invesco Exchange Traded. It trades about 0.07 of its potential returns per unit of risk. Invesco Exchange Traded is currently generating about 0.16 per unit of risk. 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 | Weak |
| Accuracy | 53.66% |
| Values | Daily Returns |
HUMANA INC vs. Invesco Exchange Traded
Performance |
| Timeline |
| HUMANA INC |
| Invesco Exchange Traded |
HUMANA and Invesco Exchange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Invesco Exchange
The main advantage of trading using opposite HUMANA and Invesco Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Invesco Exchange 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 Exchange will offset losses from the drop in Invesco Exchange's long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
| Invesco Exchange vs. Vanguard Mid Cap Value | Invesco Exchange vs. SPDR SP Dividend | Invesco Exchange vs. SCOR PK | Invesco Exchange vs. HUMANA INC |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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