Correlation Between HUMANA and Voya Solution
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By analyzing existing cross correlation between HUMANA INC and Voya Solution Income, you can compare the effects of market volatilities on HUMANA and Voya Solution 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 Voya Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Voya Solution.
Diversification Opportunities for HUMANA and Voya Solution
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and Voya is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Voya Solution Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Solution 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 Voya Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Solution Income has no effect on the direction of HUMANA i.e., HUMANA and Voya Solution go up and down completely randomly.
Pair Corralation between HUMANA and Voya Solution
Assuming the 90 days trading horizon HUMANA INC is expected to generate 147.67 times more return on investment than Voya Solution. However, HUMANA is 147.67 times more volatile than Voya Solution Income. It trades about 0.05 of its potential returns per unit of risk. Voya Solution Income is currently generating about 0.1 per unit of risk. If you would invest 7,809 in HUMANA INC on August 29, 2024 and sell it today you would earn a total of 226.00 from holding HUMANA INC or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.29% |
| Values | Daily Returns |
HUMANA INC vs. Voya Solution Income
Performance |
| Timeline |
| HUMANA INC |
| Voya Solution Income |
HUMANA and Voya Solution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Voya Solution
The main advantage of trading using opposite HUMANA and Voya Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Voya Solution 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 Voya Solution will offset losses from the drop in Voya Solution's long position.The idea behind HUMANA INC and Voya Solution 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.| Voya Solution vs. HUMANA INC | Voya Solution vs. Aquagold International | Voya Solution vs. Barloworld Ltd ADR | Voya Solution vs. Morningstar Unconstrained Allocation |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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