Correlation Between HUMANA and IShares Core
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By analyzing existing cross correlation between HUMANA INC and iShares Core MSCI, you can compare the effects of market volatilities on HUMANA and IShares Core 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 Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and IShares Core.
Diversification Opportunities for HUMANA and IShares Core
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and IShares is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and iShares Core MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core MSCI 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 Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core MSCI has no effect on the direction of HUMANA i.e., HUMANA and IShares Core go up and down completely randomly.
Pair Corralation between HUMANA and IShares Core
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the IShares Core. In addition to that, HUMANA is 1.7 times more volatile than iShares Core MSCI. It trades about -0.19 of its total potential returns per unit of risk. iShares Core MSCI is currently generating about 0.13 per unit of volatility. If you would invest 5,444 in iShares Core MSCI on September 13, 2024 and sell it today you would earn a total of 95.00 from holding iShares Core MSCI or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUMANA INC vs. iShares Core MSCI
Performance |
| Timeline |
| HUMANA INC |
| iShares Core MSCI |
HUMANA and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and IShares Core
The main advantage of trading using opposite HUMANA and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, IShares Core 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 Core will offset losses from the drop in IShares Core's long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
| IShares Core vs. Freedom Day Dividend | IShares Core vs. Franklin Templeton ETF | IShares Core vs. iShares MSCI China | IShares Core vs. Tidal Trust II |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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