Correlation Between HUMANA and IShares Genomics
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By analyzing existing cross correlation between HUMANA INC and iShares Genomics Immunology, you can compare the effects of market volatilities on HUMANA and IShares Genomics 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 Genomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and IShares Genomics.
Diversification Opportunities for HUMANA and IShares Genomics
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and IShares is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and iShares Genomics Immunology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Genomics Imm 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 Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Genomics Imm has no effect on the direction of HUMANA i.e., HUMANA and IShares Genomics go up and down completely randomly.
Pair Corralation between HUMANA and IShares Genomics
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the IShares Genomics. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.83 times less risky than IShares Genomics. The bond trades about -0.04 of its potential returns per unit of risk. The iShares Genomics Immunology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,398 in iShares Genomics Immunology on September 1, 2024 and sell it today you would earn a total of 74.00 from holding iShares Genomics Immunology or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
HUMANA INC vs. iShares Genomics Immunology
Performance |
| Timeline |
| HUMANA INC |
| iShares Genomics Imm |
HUMANA and IShares Genomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and IShares Genomics
The main advantage of trading using opposite HUMANA and IShares Genomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, IShares Genomics 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 Genomics will offset losses from the drop in IShares Genomics' long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| IShares Genomics vs. Fidelity MSCI Financials | IShares Genomics vs. Fidelity MSCI Consumer | IShares Genomics vs. Fidelity MSCI Consumer | IShares Genomics vs. Fidelity MSCI Industrials |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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