Correlation Between HUMANA and Inverse Emerging
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By analyzing existing cross correlation between HUMANA INC and Inverse Emerging Markets, you can compare the effects of market volatilities on HUMANA and Inverse Emerging 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 Inverse Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Inverse Emerging.
Diversification Opportunities for HUMANA and Inverse Emerging
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Inverse is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Inverse Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inverse Emerging Markets 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 Inverse Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inverse Emerging Markets has no effect on the direction of HUMANA i.e., HUMANA and Inverse Emerging go up and down completely randomly.
Pair Corralation between HUMANA and Inverse Emerging
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.25 times more return on investment than Inverse Emerging. However, HUMANA INC is 4.08 times less risky than Inverse Emerging. It trades about -0.01 of its potential returns per unit of risk. Inverse Emerging Markets is currently generating about -0.03 per unit of risk. If you would invest 8,010 in HUMANA INC on December 4, 2024 and sell it today you would lose (111.00) from holding HUMANA INC or give up 1.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.78% |
| Values | Daily Returns |
HUMANA INC vs. Inverse Emerging Markets
Performance |
| Timeline |
| HUMANA INC |
| Inverse Emerging Markets |
HUMANA and Inverse Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Inverse Emerging
The main advantage of trading using opposite HUMANA and Inverse Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Inverse Emerging 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 Inverse Emerging will offset losses from the drop in Inverse Emerging's long position.| HUMANA vs. enVVeno Medical Corp | HUMANA vs. Idaho Strategic Resources | HUMANA vs. Teleflex Incorporated | HUMANA vs. Avarone Metals |
| Inverse Emerging vs. American Mutual Fund | Inverse Emerging vs. Wasatch Large Cap | Inverse Emerging vs. Legg Mason Partners | Inverse Emerging vs. T Rowe Price |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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