Correlation Between HUMANA and Inspire SmallMid
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By analyzing existing cross correlation between HUMANA INC and Inspire SmallMid Cap, you can compare the effects of market volatilities on HUMANA and Inspire SmallMid 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 Inspire SmallMid. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Inspire SmallMid.
Diversification Opportunities for HUMANA and Inspire SmallMid
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Inspire is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Inspire SmallMid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspire SmallMid Cap 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 Inspire SmallMid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspire SmallMid Cap has no effect on the direction of HUMANA i.e., HUMANA and Inspire SmallMid go up and down completely randomly.
Pair Corralation between HUMANA and Inspire SmallMid
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Inspire SmallMid. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 2.46 times less risky than Inspire SmallMid. The bond trades about -0.05 of its potential returns per unit of risk. The Inspire SmallMid Cap is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 3,709 in Inspire SmallMid Cap on September 4, 2024 and sell it today you would earn a total of 366.00 from holding Inspire SmallMid Cap or generate 9.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
HUMANA INC vs. Inspire SmallMid Cap
Performance |
| Timeline |
| HUMANA INC |
| Inspire SmallMid Cap |
HUMANA and Inspire SmallMid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Inspire SmallMid
The main advantage of trading using opposite HUMANA and Inspire SmallMid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Inspire SmallMid 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 Inspire SmallMid will offset losses from the drop in Inspire SmallMid's long position.| HUMANA vs. Usio Inc | HUMANA vs. MACOM Technology Solutions | HUMANA vs. Amkor Technology | HUMANA vs. Analog Devices |
| Inspire SmallMid vs. Inspire Global Hope | Inspire SmallMid vs. Northern Lights | Inspire SmallMid vs. Inspire International ESG | Inspire SmallMid vs. Northern Lights |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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