Correlation Between HUMANA and International Advantage
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By analyzing existing cross correlation between HUMANA INC and International Advantage Portfolio, you can compare the effects of market volatilities on HUMANA and International Advantage 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 International Advantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and International Advantage.
Diversification Opportunities for HUMANA and International Advantage
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and International is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and International Advantage Portfo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Advantage 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 International Advantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Advantage has no effect on the direction of HUMANA i.e., HUMANA and International Advantage go up and down completely randomly.
Pair Corralation between HUMANA and International Advantage
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the International Advantage. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.61 times less risky than International Advantage. The bond trades about -0.02 of its potential returns per unit of risk. The International Advantage Portfolio is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,061 in International Advantage Portfolio on August 31, 2024 and sell it today you would earn a total of 297.00 from holding International Advantage Portfolio or generate 14.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.59% |
| Values | Daily Returns |
HUMANA INC vs. International Advantage Portfo
Performance |
| Timeline |
| HUMANA INC |
| International Advantage |
HUMANA and International Advantage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and International Advantage
The main advantage of trading using opposite HUMANA and International Advantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, International Advantage 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 International Advantage will offset losses from the drop in International Advantage's long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
| International Advantage vs. Europacific Growth Fund | International Advantage vs. Europacific Growth Fund | International Advantage vs. HUMANA INC | International Advantage vs. Aquagold International |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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