Correlation Between HUMANA and Vanguard Lifestrategy
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Vanguard Lifestrategy Growth, you can compare the effects of market volatilities on HUMANA and Vanguard Lifestrategy 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 Vanguard Lifestrategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Vanguard Lifestrategy.
Diversification Opportunities for HUMANA and Vanguard Lifestrategy
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Vanguard is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Vanguard Lifestrategy Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Lifestrategy 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 Vanguard Lifestrategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Lifestrategy has no effect on the direction of HUMANA i.e., HUMANA and Vanguard Lifestrategy go up and down completely randomly.
Pair Corralation between HUMANA and Vanguard Lifestrategy
Assuming the 90 days trading horizon HUMANA INC is expected to generate 127.45 times more return on investment than Vanguard Lifestrategy. However, HUMANA is 127.45 times more volatile than Vanguard Lifestrategy Growth. It trades about 0.07 of its potential returns per unit of risk. Vanguard Lifestrategy Growth is currently generating about 0.09 per unit of risk. If you would invest 8,074 in HUMANA INC on September 4, 2024 and sell it today you would lose (39.00) from holding HUMANA INC or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.54% |
| Values | Daily Returns |
HUMANA INC vs. Vanguard Lifestrategy Growth
Performance |
| Timeline |
| HUMANA INC |
| Vanguard Lifestrategy |
HUMANA and Vanguard Lifestrategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Vanguard Lifestrategy
The main advantage of trading using opposite HUMANA and Vanguard Lifestrategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Vanguard Lifestrategy 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 Vanguard Lifestrategy will offset losses from the drop in Vanguard Lifestrategy's long position.| HUMANA vs. Usio Inc | HUMANA vs. MACOM Technology Solutions | HUMANA vs. Amkor Technology | HUMANA vs. Analog Devices |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |