Correlation Between HUMANA and ProShares MSCI
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By analyzing existing cross correlation between HUMANA INC and ProShares MSCI Emerging, you can compare the effects of market volatilities on HUMANA and ProShares MSCI 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 ProShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and ProShares MSCI.
Diversification Opportunities for HUMANA and ProShares MSCI
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and ProShares is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and ProShares MSCI Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares MSCI 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 ProShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares MSCI Emerging has no effect on the direction of HUMANA i.e., HUMANA and ProShares MSCI go up and down completely randomly.
Pair Corralation between HUMANA and ProShares MSCI
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the ProShares MSCI. In addition to that, HUMANA is 1.12 times more volatile than ProShares MSCI Emerging. It trades about -0.19 of its total potential returns per unit of risk. ProShares MSCI Emerging is currently generating about -0.1 per unit of volatility. If you would invest 4,582 in ProShares MSCI Emerging on September 12, 2024 and sell it today you would lose (105.00) from holding ProShares MSCI Emerging or give up 2.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. ProShares MSCI Emerging
Performance |
| Timeline |
| HUMANA INC |
| ProShares MSCI Emerging |
HUMANA and ProShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and ProShares MSCI
The main advantage of trading using opposite HUMANA and ProShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, ProShares MSCI 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 ProShares MSCI will offset losses from the drop in ProShares MSCI's long position.The idea behind HUMANA INC and ProShares MSCI Emerging 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.| ProShares MSCI vs. Global X MSCI | ProShares MSCI vs. Global X Alternative | ProShares MSCI vs. iShares Emerging Markets | ProShares MSCI vs. Global X SuperDividend |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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