Correlation Between HUMANA and Invesco International
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By analyzing existing cross correlation between HUMANA INC and Invesco International Small, you can compare the effects of market volatilities on HUMANA and Invesco International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Invesco International.
Diversification Opportunities for HUMANA and Invesco International
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and Invesco is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Invesco International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco International has no effect on the direction of HUMANA i.e., HUMANA and Invesco International go up and down completely randomly.
Pair Corralation between HUMANA and Invesco International
Assuming the 90 days trading horizon HUMANA INC is expected to generate 111.93 times more return on investment than Invesco International. However, HUMANA is 111.93 times more volatile than Invesco International Small. It trades about 0.07 of its potential returns per unit of risk. Invesco International Small is currently generating about 0.04 per unit of risk. If you would invest 8,028 in HUMANA INC on August 30, 2024 and sell it today you would lose (333.00) from holding HUMANA INC or give up 4.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.74% |
| Values | Daily Returns |
HUMANA INC vs. Invesco International Small
Performance |
| Timeline |
| HUMANA INC |
| Invesco International |
HUMANA and Invesco International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Invesco International
The main advantage of trading using opposite HUMANA and Invesco International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Invesco International 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 International will offset losses from the drop in Invesco International's long position.The idea behind HUMANA INC and Invesco International Small pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Invesco International vs. Goldman Sachs International | Invesco International vs. HUMANA INC | Invesco International vs. Aquagold International | Invesco International vs. Barloworld Ltd ADR |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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