Correlation Between HUMANA and IShares Interest
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By analyzing existing cross correlation between HUMANA INC and iShares Interest Rate, you can compare the effects of market volatilities on HUMANA and IShares Interest 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 Interest. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and IShares Interest.
Diversification Opportunities for HUMANA and IShares Interest
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and IShares is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and iShares Interest Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Interest Rate 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 Interest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Interest Rate has no effect on the direction of HUMANA i.e., HUMANA and IShares Interest go up and down completely randomly.
Pair Corralation between HUMANA and IShares Interest
Assuming the 90 days trading horizon HUMANA INC is expected to generate 340.59 times more return on investment than IShares Interest. However, HUMANA is 340.59 times more volatile than iShares Interest Rate. It trades about 0.08 of its potential returns per unit of risk. iShares Interest Rate is currently generating about 0.15 per unit of risk. If you would invest 7,917 in HUMANA INC on September 12, 2024 and sell it today you would lose (222.00) from holding HUMANA INC or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.86% |
| Values | Daily Returns |
HUMANA INC vs. iShares Interest Rate
Performance |
| Timeline |
| HUMANA INC |
| iShares Interest Rate |
HUMANA and IShares Interest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and IShares Interest
The main advantage of trading using opposite HUMANA and IShares Interest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, IShares Interest 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 Interest will offset losses from the drop in IShares Interest's long position.The idea behind HUMANA INC and iShares Interest Rate 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.| IShares Interest vs. iShares Treasury Floating | IShares Interest vs. SPDR Bloomberg Investment | IShares Interest vs. iShares 0 3 Month | IShares Interest vs. SPDR Barclays Short |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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