Correlation Between HUMANA and Vanguard FTSE
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By analyzing existing cross correlation between HUMANA INC and Vanguard FTSE All World, you can compare the effects of market volatilities on HUMANA and Vanguard FTSE 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 FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Vanguard FTSE.
Diversification Opportunities for HUMANA and Vanguard FTSE
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and Vanguard is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Vanguard FTSE All World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard FTSE All 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 FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard FTSE All has no effect on the direction of HUMANA i.e., HUMANA and Vanguard FTSE go up and down completely randomly.
Pair Corralation between HUMANA and Vanguard FTSE
Assuming the 90 days trading horizon HUMANA INC is expected to generate 93.87 times more return on investment than Vanguard FTSE. However, HUMANA is 93.87 times more volatile than Vanguard FTSE All World. It trades about 0.07 of its potential returns per unit of risk. Vanguard FTSE All World is currently generating about 0.06 per unit of risk. If you would invest 7,953 in HUMANA INC on September 12, 2024 and sell it today you would lose (258.00) from holding HUMANA INC or give up 3.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.94% |
| Values | Daily Returns |
HUMANA INC vs. Vanguard FTSE All World
Performance |
| Timeline |
| HUMANA INC |
| Vanguard FTSE All |
HUMANA and Vanguard FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Vanguard FTSE
The main advantage of trading using opposite HUMANA and Vanguard FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Vanguard FTSE 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 FTSE will offset losses from the drop in Vanguard FTSE's long position.The idea behind HUMANA INC and Vanguard FTSE All World 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 FTSE vs. iShares MSCI Intl | Vanguard FTSE vs. iShares Currency Hedged | Vanguard FTSE vs. HUMANA INC | Vanguard FTSE vs. Aquagold International |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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