Correlation Between HUMANA and Voya Strategic
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Voya Strategic Income, you can compare the effects of market volatilities on HUMANA and Voya Strategic 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 Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Voya Strategic.
Diversification Opportunities for HUMANA and Voya Strategic
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and VOYA is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Voya Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Strategic Income 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 Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Strategic Income has no effect on the direction of HUMANA i.e., HUMANA and Voya Strategic go up and down completely randomly.
Pair Corralation between HUMANA and Voya Strategic
Assuming the 90 days trading horizon HUMANA INC is expected to generate 408.96 times more return on investment than Voya Strategic. However, HUMANA is 408.96 times more volatile than Voya Strategic Income. It trades about 0.07 of its potential returns per unit of risk. Voya Strategic Income is currently generating about 0.14 per unit of risk. If you would invest 8,081 in HUMANA INC on August 29, 2024 and sell it today you would lose (46.00) from holding HUMANA INC or give up 0.57% 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. Voya Strategic Income
Performance |
| Timeline |
| HUMANA INC |
| Voya Strategic Income |
HUMANA and Voya Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Voya Strategic
The main advantage of trading using opposite HUMANA and Voya Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Voya Strategic 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 Strategic will offset losses from the drop in Voya Strategic's long position.The idea behind HUMANA INC and Voya Strategic Income 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 Strategic vs. HUMANA INC | Voya Strategic vs. Aquagold International | Voya Strategic vs. Barloworld Ltd ADR | Voya Strategic 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |