Correlation Between HUMANA and IShares ESG
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By analyzing existing cross correlation between HUMANA INC and iShares ESG Advanced, you can compare the effects of market volatilities on HUMANA and IShares ESG 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 IShares ESG. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and IShares ESG.
Diversification Opportunities for HUMANA and IShares ESG
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and IShares is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and iShares ESG Advanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares ESG Advanced 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 IShares ESG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares ESG Advanced has no effect on the direction of HUMANA i.e., HUMANA and IShares ESG go up and down completely randomly.
Pair Corralation between HUMANA and IShares ESG
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the IShares ESG. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.45 times less risky than IShares ESG. The bond trades about -0.19 of its potential returns per unit of risk. The iShares ESG Advanced is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 4,892 in iShares ESG Advanced on August 25, 2024 and sell it today you would earn a total of 297.00 from holding iShares ESG Advanced or generate 6.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.56% |
| Values | Daily Returns |
HUMANA INC vs. iShares ESG Advanced
Performance |
| Timeline |
| HUMANA INC |
| iShares ESG Advanced |
HUMANA and IShares ESG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and IShares ESG
The main advantage of trading using opposite HUMANA and IShares ESG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, IShares ESG 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 IShares ESG will offset losses from the drop in IShares ESG's long position.| HUMANA vs. Deluxe | HUMANA vs. Vita Coco | HUMANA vs. Willamette Valley Vineyards | HUMANA vs. Global E Online |
| IShares ESG vs. Invesco Dynamic Large | IShares ESG vs. Perella Weinberg Partners | IShares ESG vs. HUMANA INC | IShares ESG vs. Aquagold International |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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