Correlation Between HUMANA and IndexIQ ETF
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By analyzing existing cross correlation between HUMANA INC and IndexIQ ETF Trust, you can compare the effects of market volatilities on HUMANA and IndexIQ ETF 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 IndexIQ ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and IndexIQ ETF.
Diversification Opportunities for HUMANA and IndexIQ ETF
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and IndexIQ is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and IndexIQ ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IndexIQ ETF Trust 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 IndexIQ ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IndexIQ ETF Trust has no effect on the direction of HUMANA i.e., HUMANA and IndexIQ ETF go up and down completely randomly.
Pair Corralation between HUMANA and IndexIQ ETF
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the IndexIQ ETF. In addition to that, HUMANA is 1.84 times more volatile than IndexIQ ETF Trust. It trades about -0.16 of its total potential returns per unit of risk. IndexIQ ETF Trust is currently generating about -0.03 per unit of volatility. If you would invest 2,164 in IndexIQ ETF Trust on September 1, 2024 and sell it today you would lose (13.00) from holding IndexIQ ETF Trust or give up 0.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. IndexIQ ETF Trust
Performance |
| Timeline |
| HUMANA INC |
| IndexIQ ETF Trust |
HUMANA and IndexIQ ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and IndexIQ ETF
The main advantage of trading using opposite HUMANA and IndexIQ ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, IndexIQ ETF 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 IndexIQ ETF will offset losses from the drop in IndexIQ ETF's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| IndexIQ ETF vs. IndexIQ ETF Trust | IndexIQ ETF vs. Invesco ESG NASDAQ | IndexIQ ETF vs. Invesco ESG NASDAQ | IndexIQ ETF vs. Nushares ETF Trust |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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