Correlation Between HUMANA and Vanguard Total
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By analyzing existing cross correlation between HUMANA INC and Vanguard Total Bond, you can compare the effects of market volatilities on HUMANA and Vanguard Total 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 Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Vanguard Total.
Diversification Opportunities for HUMANA and Vanguard Total
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUMANA and Vanguard is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Vanguard Total Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Total 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 Vanguard Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Total Bond has no effect on the direction of HUMANA i.e., HUMANA and Vanguard Total go up and down completely randomly.
Pair Corralation between HUMANA and Vanguard Total
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Vanguard Total. In addition to that, HUMANA is 3.26 times more volatile than Vanguard Total Bond. It trades about -0.23 of its total potential returns per unit of risk. Vanguard Total Bond is currently generating about -0.07 per unit of volatility. If you would invest 960.00 in Vanguard Total Bond on August 24, 2024 and sell it today you would lose (5.00) from holding Vanguard Total Bond or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Vanguard Total Bond
Performance |
| Timeline |
| HUMANA INC |
| Vanguard Total Bond |
HUMANA and Vanguard Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Vanguard Total
The main advantage of trading using opposite HUMANA and Vanguard Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Vanguard Total 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 Total will offset losses from the drop in Vanguard Total's long position.| HUMANA vs. Western Digital | HUMANA vs. Arrow Electronics | HUMANA vs. Anheuser Busch Inbev | HUMANA vs. Keurig Dr Pepper |
| Vanguard Total vs. Vanguard Total International | Vanguard Total vs. Vanguard Extended Market | Vanguard Total vs. Vanguard Small Cap Index | Vanguard Total vs. Vanguard Institutional Index |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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