Correlation Between HUMANA and Vanguard International
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By analyzing existing cross correlation between HUMANA INC and Vanguard International High, you can compare the effects of market volatilities on HUMANA and Vanguard International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Vanguard International.
Diversification Opportunities for HUMANA and Vanguard International
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and Vanguard is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Vanguard International High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard International has no effect on the direction of HUMANA i.e., HUMANA and Vanguard International go up and down completely randomly.
Pair Corralation between HUMANA and Vanguard International
Assuming the 90 days trading horizon HUMANA INC is expected to generate 109.74 times more return on investment than Vanguard International. However, HUMANA is 109.74 times more volatile than Vanguard International High. It trades about 0.07 of its potential returns per unit of risk. Vanguard International High is currently generating about 0.07 per unit of risk. If you would invest 8,028 in HUMANA INC on August 30, 2024 and sell it today you would lose (333.00) from holding HUMANA INC or give up 4.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.74% |
| Values | Daily Returns |
HUMANA INC vs. Vanguard International High
Performance |
| Timeline |
| HUMANA INC |
| Vanguard International |
HUMANA and Vanguard International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Vanguard International
The main advantage of trading using opposite HUMANA and Vanguard International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Vanguard International 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 International will offset losses from the drop in Vanguard International's long position.The idea behind HUMANA INC and Vanguard International High 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.| Vanguard International vs. HUMANA INC | Vanguard International vs. Aquagold International | Vanguard International vs. Barloworld Ltd ADR | Vanguard International vs. Morningstar Unconstrained Allocation |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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