Correlation Between HUMANA and Vanguard Small-cap
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By analyzing existing cross correlation between HUMANA INC and Vanguard Small Cap Index, you can compare the effects of market volatilities on HUMANA and Vanguard Small-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 Vanguard Small-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Vanguard Small-cap.
Diversification Opportunities for HUMANA and Vanguard Small-cap
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Vanguard is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Vanguard Small Cap Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Small 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 Vanguard Small-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Small Cap has no effect on the direction of HUMANA i.e., HUMANA and Vanguard Small-cap go up and down completely randomly.
Pair Corralation between HUMANA and Vanguard Small-cap
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Vanguard Small-cap. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.05 times less risky than Vanguard Small-cap. The bond trades about -0.21 of its potential returns per unit of risk. The Vanguard Small Cap Index is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 11,289 in Vanguard Small Cap Index on September 1, 2024 and sell it today you would earn a total of 1,153 from holding Vanguard Small Cap Index or generate 10.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Vanguard Small Cap Index
Performance |
| Timeline |
| HUMANA INC |
| Vanguard Small Cap |
HUMANA and Vanguard Small-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Vanguard Small-cap
The main advantage of trading using opposite HUMANA and Vanguard Small-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Vanguard Small-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 Vanguard Small-cap will offset losses from the drop in Vanguard Small-cap's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Vanguard Small-cap vs. Vanguard Mid Cap Index | Vanguard Small-cap vs. Vanguard 500 Index | Vanguard Small-cap vs. Vanguard Emerging Markets | Vanguard Small-cap vs. Vanguard Reit Index |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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