Correlation Between HUMANA and FlexShares Quality
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By analyzing existing cross correlation between HUMANA INC and FlexShares Quality Dividend, you can compare the effects of market volatilities on HUMANA and FlexShares Quality 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 FlexShares Quality. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and FlexShares Quality.
Diversification Opportunities for HUMANA and FlexShares Quality
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUMANA and FlexShares is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and FlexShares Quality Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FlexShares Quality 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 FlexShares Quality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FlexShares Quality has no effect on the direction of HUMANA i.e., HUMANA and FlexShares Quality go up and down completely randomly.
Pair Corralation between HUMANA and FlexShares Quality
Assuming the 90 days trading horizon HUMANA INC is expected to generate 125.21 times more return on investment than FlexShares Quality. However, HUMANA is 125.21 times more volatile than FlexShares Quality Dividend. It trades about 0.07 of its potential returns per unit of risk. FlexShares Quality Dividend is currently generating about 0.13 per unit of risk. If you would invest 7,703 in HUMANA INC on November 28, 2024 and sell it today you would earn a total of 196.00 from holding HUMANA INC or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.14% |
| Values | Daily Returns |
HUMANA INC vs. FlexShares Quality Dividend
Performance |
| Timeline |
| HUMANA INC |
| FlexShares Quality |
HUMANA and FlexShares Quality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and FlexShares Quality
The main advantage of trading using opposite HUMANA and FlexShares Quality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, FlexShares Quality 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 FlexShares Quality will offset losses from the drop in FlexShares Quality's long position.| HUMANA vs. Iridium Communications | HUMANA vs. Barrick Gold Corp | HUMANA vs. Sun Peak Metals | HUMANA vs. Pinterest |
| FlexShares Quality vs. FlexShares Quality Dividend | FlexShares Quality vs. FlexShares International Quality | FlexShares Quality vs. FlexShares International Quality |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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