Correlation Between HUMANA and IShares MSCI
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By analyzing existing cross correlation between HUMANA INC and iShares MSCI Philippines, you can compare the effects of market volatilities on HUMANA and IShares 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 IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and IShares MSCI.
Diversification Opportunities for HUMANA and IShares MSCI
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and IShares is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and iShares MSCI Philippines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Philippines 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 IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI Philippines has no effect on the direction of HUMANA i.e., HUMANA and IShares MSCI go up and down completely randomly.
Pair Corralation between HUMANA and IShares MSCI
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.5 times more return on investment than IShares MSCI. However, HUMANA INC is 1.98 times less risky than IShares MSCI. It trades about -0.07 of its potential returns per unit of risk. iShares MSCI Philippines is currently generating about -0.26 per unit of risk. If you would invest 8,111 in HUMANA INC on August 29, 2024 and sell it today you would lose (76.00) from holding HUMANA INC or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
HUMANA INC vs. iShares MSCI Philippines
Performance |
| Timeline |
| HUMANA INC |
| iShares MSCI Philippines |
HUMANA and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and IShares MSCI
The main advantage of trading using opposite HUMANA and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, IShares 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 IShares MSCI will offset losses from the drop in IShares MSCI's long position.The idea behind HUMANA INC and iShares MSCI Philippines 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.| IShares MSCI vs. iShares MSCI Ireland | IShares MSCI vs. iShares MSCI Israel | IShares MSCI vs. iShares MSCI Poland | IShares MSCI vs. iShares MSCI Finland |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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