Correlation Between HUMANA and Voya Large-cap
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Voya Large Cap Growth, you can compare the effects of market volatilities on HUMANA and Voya Large-cap 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 Voya Large-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Voya Large-cap.
Diversification Opportunities for HUMANA and Voya Large-cap
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Voya is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Voya Large Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Large Cap 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 Voya Large-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Large Cap has no effect on the direction of HUMANA i.e., HUMANA and Voya Large-cap go up and down completely randomly.
Pair Corralation between HUMANA and Voya Large-cap
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Voya Large-cap. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.24 times less risky than Voya Large-cap. The bond trades about -0.15 of its potential returns per unit of risk. The Voya Large Cap Growth is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 5,512 in Voya Large Cap Growth on September 2, 2024 and sell it today you would earn a total of 714.00 from holding Voya Large Cap Growth or generate 12.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
HUMANA INC vs. Voya Large Cap Growth
Performance |
| Timeline |
| HUMANA INC |
| Voya Large Cap |
HUMANA and Voya Large-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Voya Large-cap
The main advantage of trading using opposite HUMANA and Voya Large-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Voya Large-cap 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 Voya Large-cap will offset losses from the drop in Voya Large-cap's long position.The idea behind HUMANA INC and Voya Large Cap Growth 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.| Voya Large-cap vs. Voya Bond Index | Voya Large-cap vs. Voya Bond Index | Voya Large-cap vs. Voya Limited Maturity | Voya Large-cap vs. Voya Limited Maturity |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |