Correlation Between HUMANA and IShares Ultra
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By analyzing existing cross correlation between HUMANA INC and iShares Ultra Short Term, you can compare the effects of market volatilities on HUMANA and IShares Ultra 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 Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and IShares Ultra.
Diversification Opportunities for HUMANA and IShares Ultra
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and IShares is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and iShares Ultra Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Ultra Short 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 Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Ultra Short has no effect on the direction of HUMANA i.e., HUMANA and IShares Ultra go up and down completely randomly.
Pair Corralation between HUMANA and IShares Ultra
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the IShares Ultra. In addition to that, HUMANA is 37.92 times more volatile than iShares Ultra Short Term. It trades about -0.19 of its total potential returns per unit of risk. iShares Ultra Short Term is currently generating about 0.7 per unit of volatility. If you would invest 5,030 in iShares Ultra Short Term on September 13, 2024 and sell it today you would earn a total of 22.00 from holding iShares Ultra Short Term or generate 0.44% 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 Ultra Short Term
Performance |
| Timeline |
| HUMANA INC |
| iShares Ultra Short |
HUMANA and IShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and IShares Ultra
The main advantage of trading using opposite HUMANA and IShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, IShares Ultra 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 Ultra will offset losses from the drop in IShares Ultra's long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
| IShares Ultra vs. iShares Treasury Floating | IShares Ultra vs. SPDR Bloomberg Investment | IShares Ultra vs. iShares 0 3 Month | IShares Ultra vs. SPDR Barclays Short |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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