Correlation Between HUMANA and Ishares Trust
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By analyzing existing cross correlation between HUMANA INC and Ishares Trust , you can compare the effects of market volatilities on HUMANA and Ishares Trust 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 Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Ishares Trust.
Diversification Opportunities for HUMANA and Ishares Trust
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Ishares is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Ishares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ishares Trust 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 Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ishares Trust has no effect on the direction of HUMANA i.e., HUMANA and Ishares Trust go up and down completely randomly.
Pair Corralation between HUMANA and Ishares Trust
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Ishares Trust. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.89 times less risky than Ishares Trust. The bond trades about -0.06 of its potential returns per unit of risk. The Ishares Trust is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,242 in Ishares Trust on August 30, 2024 and sell it today you would lose (16.00) from holding Ishares Trust or give up 0.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 82.61% |
| Values | Daily Returns |
HUMANA INC vs. Ishares Trust
Performance |
| Timeline |
| HUMANA INC |
| Ishares Trust |
HUMANA and Ishares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Ishares Trust
The main advantage of trading using opposite HUMANA and Ishares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Ishares Trust 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 Trust will offset losses from the drop in Ishares Trust's long position.| HUMANA vs. Brandywine Realty Trust | HUMANA vs. Celsius Holdings | HUMANA vs. Uber Technologies | HUMANA vs. PepsiCo |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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