Correlation Between HUMANA and VanEck Morningstar
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By analyzing existing cross correlation between HUMANA INC and VanEck Morningstar Wide, you can compare the effects of market volatilities on HUMANA and VanEck Morningstar 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 VanEck Morningstar. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and VanEck Morningstar.
Diversification Opportunities for HUMANA and VanEck Morningstar
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and VanEck is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and VanEck Morningstar Wide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Morningstar Wide 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 VanEck Morningstar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Morningstar Wide has no effect on the direction of HUMANA i.e., HUMANA and VanEck Morningstar go up and down completely randomly.
Pair Corralation between HUMANA and VanEck Morningstar
Assuming the 90 days trading horizon HUMANA INC is expected to generate 135.54 times more return on investment than VanEck Morningstar. However, HUMANA is 135.54 times more volatile than VanEck Morningstar Wide. It trades about 0.08 of its potential returns per unit of risk. VanEck Morningstar Wide is currently generating about 0.1 per unit of risk. If you would invest 7,887 in HUMANA INC on September 4, 2024 and sell it today you would earn a total of 148.00 from holding HUMANA INC or generate 1.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 47.79% |
| Values | Daily Returns |
HUMANA INC vs. VanEck Morningstar Wide
Performance |
| Timeline |
| HUMANA INC |
| VanEck Morningstar Wide |
HUMANA and VanEck Morningstar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and VanEck Morningstar
The main advantage of trading using opposite HUMANA and VanEck Morningstar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, VanEck Morningstar 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 VanEck Morningstar will offset losses from the drop in VanEck Morningstar's long position.| HUMANA vs. Usio Inc | HUMANA vs. MACOM Technology Solutions | HUMANA vs. Amkor Technology | HUMANA vs. Analog Devices |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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