Correlation Between HUMANA and Vanguard Global
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By analyzing existing cross correlation between HUMANA INC and Vanguard Global Minimum, you can compare the effects of market volatilities on HUMANA and Vanguard Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Vanguard Global.
Diversification Opportunities for HUMANA and Vanguard Global
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Vanguard is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Vanguard Global Minimum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Global Minimum 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Global Minimum has no effect on the direction of HUMANA i.e., HUMANA and Vanguard Global go up and down completely randomly.
Pair Corralation between HUMANA and Vanguard Global
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Vanguard Global. In addition to that, HUMANA is 1.16 times more volatile than Vanguard Global Minimum. It trades about -0.07 of its total potential returns per unit of risk. Vanguard Global Minimum is currently generating about 0.15 per unit of volatility. If you would invest 3,259 in Vanguard Global Minimum on August 29, 2024 and sell it today you would earn a total of 62.00 from holding Vanguard Global Minimum or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.96% |
| Values | Daily Returns |
HUMANA INC vs. Vanguard Global Minimum
Performance |
| Timeline |
| HUMANA INC |
| Vanguard Global Minimum |
HUMANA and Vanguard Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Vanguard Global
The main advantage of trading using opposite HUMANA and Vanguard Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Vanguard Global 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 Global will offset losses from the drop in Vanguard Global's long position.The idea behind HUMANA INC and Vanguard Global Minimum 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 Global vs. Commonwealth Australianew Zealand | Vanguard Global vs. Commonwealth Japan Fund | Vanguard Global vs. Commonwealth Real Estate | Vanguard Global vs. HUMANA INC |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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