Correlation Between HUMANA and Vanguard Mega
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By analyzing existing cross correlation between HUMANA INC and Vanguard Mega Cap, you can compare the effects of market volatilities on HUMANA and Vanguard Mega 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 Vanguard Mega. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Vanguard Mega.
Diversification Opportunities for HUMANA and Vanguard Mega
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Vanguard is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Vanguard Mega Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Mega 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 Vanguard Mega. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Mega Cap has no effect on the direction of HUMANA i.e., HUMANA and Vanguard Mega go up and down completely randomly.
Pair Corralation between HUMANA and Vanguard Mega
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Vanguard Mega. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.08 times less risky than Vanguard Mega. The bond trades about -0.22 of its potential returns per unit of risk. The Vanguard Mega Cap is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 32,195 in Vanguard Mega Cap on August 30, 2024 and sell it today you would earn a total of 1,503 from holding Vanguard Mega Cap or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.35% |
| Values | Daily Returns |
HUMANA INC vs. Vanguard Mega Cap
Performance |
| Timeline |
| HUMANA INC |
| Vanguard Mega Cap |
HUMANA and Vanguard Mega Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Vanguard Mega
The main advantage of trading using opposite HUMANA and Vanguard Mega positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Vanguard Mega 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 Vanguard Mega will offset losses from the drop in Vanguard Mega's long position.The idea behind HUMANA INC and Vanguard Mega Cap 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.| Vanguard Mega vs. Vanguard Mega Cap | Vanguard Mega vs. Vanguard Mid Cap Growth | Vanguard Mega vs. Vanguard Growth Index | Vanguard Mega vs. Vanguard Small Cap Growth |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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