Correlation Between HUMANA and Macquarie ETF
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By analyzing existing cross correlation between HUMANA INC and Macquarie ETF Trust, you can compare the effects of market volatilities on HUMANA and Macquarie 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 Macquarie ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Macquarie ETF.
Diversification Opportunities for HUMANA and Macquarie ETF
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Macquarie is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Macquarie ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie 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 Macquarie ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie ETF Trust has no effect on the direction of HUMANA i.e., HUMANA and Macquarie ETF go up and down completely randomly.
Pair Corralation between HUMANA and Macquarie ETF
Assuming the 90 days trading horizon HUMANA INC is expected to generate 878.0 times more return on investment than Macquarie ETF. However, HUMANA is 878.0 times more volatile than Macquarie ETF Trust. It trades about 0.07 of its potential returns per unit of risk. Macquarie ETF Trust is currently generating about 0.18 per unit of risk. If you would invest 8,081 in HUMANA INC on August 29, 2024 and sell it today you would lose (46.00) from holding HUMANA INC or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 54.31% |
| Values | Daily Returns |
HUMANA INC vs. Macquarie ETF Trust
Performance |
| Timeline |
| HUMANA INC |
| Macquarie ETF Trust |
HUMANA and Macquarie ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Macquarie ETF
The main advantage of trading using opposite HUMANA and Macquarie ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Macquarie 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 Macquarie ETF will offset losses from the drop in Macquarie ETF's long position.The idea behind HUMANA INC and Macquarie ETF Trust 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.| Macquarie ETF vs. iShares Interest Rate | Macquarie ETF vs. ABIVAX Socit Anonyme | Macquarie ETF vs. HUMANA INC | Macquarie ETF vs. SCOR PK |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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