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
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and IShares is -0.64. 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 is expected to generate 9.1 times less return on investment than IShares Trust. But when comparing it to its historical volatility, HUMANA INC is 1.88 times less risky than IShares Trust. It trades about 0.03 of its potential returns per unit of risk. iShares Trust is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5,520 in iShares Trust on August 26, 2024 and sell it today you would earn a total of 2,548 from holding iShares Trust or generate 46.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.78% |
| 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. Deluxe | HUMANA vs. Vita Coco | HUMANA vs. Willamette Valley Vineyards | HUMANA vs. Global E Online |
| IShares Trust vs. Invesco DWA Utilities | IShares Trust vs. Invesco Dynamic Large | IShares Trust vs. Invesco Dynamic Large | IShares Trust vs. HUMANA INC |
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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