Correlation Between HUMANA and Invesco Trust
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By analyzing existing cross correlation between HUMANA INC and Invesco Trust For, you can compare the effects of market volatilities on HUMANA and Invesco Trust 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 Invesco Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Invesco Trust.
Diversification Opportunities for HUMANA and Invesco Trust
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Invesco is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Invesco Trust For in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Trust For 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 Invesco Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Trust For has no effect on the direction of HUMANA i.e., HUMANA and Invesco Trust go up and down completely randomly.
Pair Corralation between HUMANA and Invesco Trust
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Invesco Trust. In addition to that, HUMANA is 1.08 times more volatile than Invesco Trust For. It trades about -0.02 of its total potential returns per unit of risk. Invesco Trust For is currently generating about 0.12 per unit of volatility. If you would invest 970.00 in Invesco Trust For on September 2, 2024 and sell it today you would earn a total of 184.00 from holding Invesco Trust For or generate 18.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.58% |
| Values | Daily Returns |
HUMANA INC vs. Invesco Trust For
Performance |
| Timeline |
| HUMANA INC |
| Invesco Trust For |
HUMANA and Invesco Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Invesco Trust
The main advantage of trading using opposite HUMANA and Invesco Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Invesco Trust 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 Invesco Trust will offset losses from the drop in Invesco Trust's long position.The idea behind HUMANA INC and Invesco Trust For 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.| Invesco Trust vs. Pimco New York | Invesco Trust vs. Pimco New York | Invesco Trust vs. BlackRock New York | Invesco Trust vs. Invesco California Value |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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