Correlation Between HUMANA and Vanguard Market
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By analyzing existing cross correlation between HUMANA INC and Vanguard Market Neutral, you can compare the effects of market volatilities on HUMANA and Vanguard Market 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 Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Vanguard Market.
Diversification Opportunities for HUMANA and Vanguard Market
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and Vanguard is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Vanguard Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Market Neutral 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 Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Market Neutral has no effect on the direction of HUMANA i.e., HUMANA and Vanguard Market go up and down completely randomly.
Pair Corralation between HUMANA and Vanguard Market
Assuming the 90 days trading horizon HUMANA INC is expected to generate 210.5 times more return on investment than Vanguard Market. However, HUMANA is 210.5 times more volatile than Vanguard Market Neutral. It trades about 0.08 of its potential returns per unit of risk. Vanguard Market Neutral is currently generating about 0.11 per unit of risk. If you would invest 8,039 in HUMANA INC on August 27, 2024 and sell it today you would lose (4.00) from holding HUMANA INC or give up 0.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.29% |
| Values | Daily Returns |
HUMANA INC vs. Vanguard Market Neutral
Performance |
| Timeline |
| HUMANA INC |
| Vanguard Market Neutral |
HUMANA and Vanguard Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Vanguard Market
The main advantage of trading using opposite HUMANA and Vanguard Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Vanguard Market 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 Market will offset losses from the drop in Vanguard Market's long position.| HUMANA vs. Ultra Clean Holdings | HUMANA vs. Dream Homes Development | HUMANA vs. JBG SMITH Properties | HUMANA vs. Allegheny Technologies Incorporated |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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