Correlation Between HUMANA and Invesco SP
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By analyzing existing cross correlation between HUMANA INC and Invesco SP Emerging, you can compare the effects of market volatilities on HUMANA and Invesco SP 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 SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Invesco SP.
Diversification Opportunities for HUMANA and Invesco SP
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUMANA and Invesco is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Invesco SP Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco SP Emerging 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 SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco SP Emerging has no effect on the direction of HUMANA i.e., HUMANA and Invesco SP go up and down completely randomly.
Pair Corralation between HUMANA and Invesco SP
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Invesco SP. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.37 times less risky than Invesco SP. The bond trades about -0.09 of its potential returns per unit of risk. The Invesco SP Emerging is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,690 in Invesco SP Emerging on September 3, 2024 and sell it today you would lose (35.00) from holding Invesco SP Emerging or give up 2.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
HUMANA INC vs. Invesco SP Emerging
Performance |
| Timeline |
| HUMANA INC |
| Invesco SP Emerging |
HUMANA and Invesco SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Invesco SP
The main advantage of trading using opposite HUMANA and Invesco SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Invesco SP 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 SP will offset losses from the drop in Invesco SP's long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
| Invesco SP vs. Invesco SP Emerging | Invesco SP vs. SCOR PK | Invesco SP vs. HUMANA INC | Invesco SP vs. Aquagold International |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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