Correlation Between HUMANA and IShares Short
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By analyzing existing cross correlation between HUMANA INC and iShares Short Maturity, you can compare the effects of market volatilities on HUMANA and IShares Short 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 Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and IShares Short.
Diversification Opportunities for HUMANA and IShares Short
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and IShares is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and iShares Short Maturity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Short Maturity 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 Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Short Maturity has no effect on the direction of HUMANA i.e., HUMANA and IShares Short go up and down completely randomly.
Pair Corralation between HUMANA and IShares Short
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the IShares Short. In addition to that, HUMANA is 9.51 times more volatile than iShares Short Maturity. It trades about -0.16 of its total potential returns per unit of risk. iShares Short Maturity is currently generating about 0.13 per unit of volatility. If you would invest 5,003 in iShares Short Maturity on August 29, 2024 and sell it today you would earn a total of 20.50 from holding iShares Short Maturity or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.02% |
| Values | Daily Returns |
HUMANA INC vs. iShares Short Maturity
Performance |
| Timeline |
| HUMANA INC |
| iShares Short Maturity |
HUMANA and IShares Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and IShares Short
The main advantage of trading using opposite HUMANA and IShares Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, IShares Short 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 Short will offset losses from the drop in IShares Short's long position.The idea behind HUMANA INC and iShares Short Maturity 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 Short vs. iShares Interest Rate | IShares Short vs. ABIVAX Socit Anonyme | IShares Short vs. HUMANA INC | IShares Short vs. SCOR PK |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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