Correlation Between HUMANA and Ivy Wilshire
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By analyzing existing cross correlation between HUMANA INC and Ivy Wilshire Global, you can compare the effects of market volatilities on HUMANA and Ivy Wilshire 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 Wilshire. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Ivy Wilshire.
Diversification Opportunities for HUMANA and Ivy Wilshire
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Ivy is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Ivy Wilshire Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy Wilshire Global 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 Wilshire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy Wilshire Global has no effect on the direction of HUMANA i.e., HUMANA and Ivy Wilshire go up and down completely randomly.
Pair Corralation between HUMANA and Ivy Wilshire
Assuming the 90 days trading horizon HUMANA INC is expected to generate 115.55 times more return on investment than Ivy Wilshire. However, HUMANA is 115.55 times more volatile than Ivy Wilshire Global. It trades about 0.07 of its potential returns per unit of risk. Ivy Wilshire Global is currently generating about 0.02 per unit of risk. If you would invest 8,028 in HUMANA INC on August 30, 2024 and sell it today you would lose (333.00) from holding HUMANA INC or give up 4.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.74% |
| Values | Daily Returns |
HUMANA INC vs. Ivy Wilshire Global
Performance |
| Timeline |
| HUMANA INC |
| Ivy Wilshire Global |
HUMANA and Ivy Wilshire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Ivy Wilshire
The main advantage of trading using opposite HUMANA and Ivy Wilshire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Ivy Wilshire 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 Wilshire will offset losses from the drop in Ivy Wilshire's long position.The idea behind HUMANA INC and Ivy Wilshire Global 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 Wilshire vs. Capital Income Builder | Ivy Wilshire vs. Capital Income Builder | Ivy Wilshire vs. Capital Income Builder | Ivy Wilshire vs. HUMANA INC |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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