Correlation Between HUMANA and Ivy High
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By analyzing existing cross correlation between HUMANA INC and Ivy High Income, you can compare the effects of market volatilities on HUMANA and Ivy High 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 Ivy High. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Ivy High.
Diversification Opportunities for HUMANA and Ivy High
Excellent diversification
The 3 months correlation between HUMANA and Ivy is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Ivy High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy High Income 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 Ivy High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy High Income has no effect on the direction of HUMANA i.e., HUMANA and Ivy High go up and down completely randomly.
Pair Corralation between HUMANA and Ivy High
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Ivy High. In addition to that, HUMANA is 2.83 times more volatile than Ivy High Income. It trades about -0.07 of its total potential returns per unit of risk. Ivy High Income is currently generating about 0.16 per unit of volatility. If you would invest 606.00 in Ivy High Income on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Ivy High Income or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
HUMANA INC vs. Ivy High Income
Performance |
| Timeline |
| HUMANA INC |
| Ivy High Income |
HUMANA and Ivy High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Ivy High
The main advantage of trading using opposite HUMANA and Ivy High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Ivy High 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 Ivy High will offset losses from the drop in Ivy High's long position.The idea behind HUMANA INC and Ivy High Income 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.| Ivy High vs. Prudential High Yield | Ivy High vs. HUMANA INC | Ivy High vs. Aquagold International | Ivy High 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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