Correlation Between HUMANA and Virginia Bond
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By analyzing existing cross correlation between HUMANA INC and Virginia Bond Fund, you can compare the effects of market volatilities on HUMANA and Virginia Bond 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 Virginia Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Virginia Bond.
Diversification Opportunities for HUMANA and Virginia Bond
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and Virginia is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Virginia Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virginia Bond 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 Virginia Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virginia Bond has no effect on the direction of HUMANA i.e., HUMANA and Virginia Bond go up and down completely randomly.
Pair Corralation between HUMANA and Virginia Bond
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Virginia Bond. In addition to that, HUMANA is 2.6 times more volatile than Virginia Bond Fund. It trades about -0.04 of its total potential returns per unit of risk. Virginia Bond Fund is currently generating about 0.14 per unit of volatility. If you would invest 1,021 in Virginia Bond Fund on September 1, 2024 and sell it today you would earn a total of 47.00 from holding Virginia Bond Fund or generate 4.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
HUMANA INC vs. Virginia Bond Fund
Performance |
| Timeline |
| HUMANA INC |
| Virginia Bond |
HUMANA and Virginia Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Virginia Bond
The main advantage of trading using opposite HUMANA and Virginia Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Virginia Bond 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 Virginia Bond will offset losses from the drop in Virginia Bond's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Virginia Bond vs. Income Fund Income | Virginia Bond vs. Usaa Nasdaq 100 | Virginia Bond vs. Victory Diversified Stock | Virginia Bond vs. Intermediate Term Bond Fund |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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