Correlation Between HUMANA and Invesco Developing
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By analyzing existing cross correlation between HUMANA INC and Invesco Developing Markets, you can compare the effects of market volatilities on HUMANA and Invesco Developing 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 Developing. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Invesco Developing.
Diversification Opportunities for HUMANA and Invesco Developing
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Invesco is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Invesco Developing Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Developing 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 Developing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Developing has no effect on the direction of HUMANA i.e., HUMANA and Invesco Developing go up and down completely randomly.
Pair Corralation between HUMANA and Invesco Developing
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.82 times more return on investment than Invesco Developing. However, HUMANA INC is 1.22 times less risky than Invesco Developing. It trades about -0.05 of its potential returns per unit of risk. Invesco Developing Markets is currently generating about -0.2 per unit of risk. If you would invest 8,090 in HUMANA INC on September 4, 2024 and sell it today you would lose (55.00) from holding HUMANA INC or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
HUMANA INC vs. Invesco Developing Markets
Performance |
| Timeline |
| HUMANA INC |
| Invesco Developing |
HUMANA and Invesco Developing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Invesco Developing
The main advantage of trading using opposite HUMANA and Invesco Developing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Invesco Developing 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 Developing will offset losses from the drop in Invesco Developing's long position.| HUMANA vs. Usio Inc | HUMANA vs. MACOM Technology Solutions | HUMANA vs. Amkor Technology | HUMANA vs. Analog Devices |
| Invesco Developing vs. Invesco Asia Pacific | Invesco Developing vs. Invesco Energy Fund | Invesco Developing vs. Invesco European Growth | Invesco Developing vs. Invesco International Small |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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