Correlation Between HUMANA and IShares Focused
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By analyzing existing cross correlation between HUMANA INC and iShares Focused Value, you can compare the effects of market volatilities on HUMANA and IShares Focused 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 Focused. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and IShares Focused.
Diversification Opportunities for HUMANA and IShares Focused
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and IShares is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and iShares Focused Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Focused Value 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 Focused. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Focused Value has no effect on the direction of HUMANA i.e., HUMANA and IShares Focused go up and down completely randomly.
Pair Corralation between HUMANA and IShares Focused
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the IShares Focused. In addition to that, HUMANA is 1.55 times more volatile than iShares Focused Value. It trades about -0.19 of its total potential returns per unit of risk. iShares Focused Value is currently generating about 0.05 per unit of volatility. If you would invest 7,271 in iShares Focused Value on September 13, 2024 and sell it today you would earn a total of 47.00 from holding iShares Focused Value or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUMANA INC vs. iShares Focused Value
Performance |
| Timeline |
| HUMANA INC |
| iShares Focused Value |
HUMANA and IShares Focused Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and IShares Focused
The main advantage of trading using opposite HUMANA and IShares Focused positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, IShares Focused 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 Focused will offset losses from the drop in IShares Focused's long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
| IShares Focused vs. Roundhill Acquirers Deep | IShares Focused vs. BlackRock Equity Factor | IShares Focused vs. iShares MSCI USA | IShares Focused vs. iShares Evolved Discretionary |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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