Correlation Between HUMANA and Voya Target
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By analyzing existing cross correlation between HUMANA INC and Voya Target Retirement, you can compare the effects of market volatilities on HUMANA and Voya Target 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 Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Voya Target.
Diversification Opportunities for HUMANA and Voya Target
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Voya is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Voya Target Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Target Retirement 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 Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Target Retirement has no effect on the direction of HUMANA i.e., HUMANA and Voya Target go up and down completely randomly.
Pair Corralation between HUMANA and Voya Target
Assuming the 90 days trading horizon HUMANA INC is expected to generate 133.36 times more return on investment than Voya Target. However, HUMANA is 133.36 times more volatile than Voya Target Retirement. It trades about 0.07 of its potential returns per unit of risk. Voya Target Retirement is currently generating about 0.11 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 Against |
| Strength | Very Weak |
| Accuracy | 94.13% |
| Values | Daily Returns |
HUMANA INC vs. Voya Target Retirement
Performance |
| Timeline |
| HUMANA INC |
| Voya Target Retirement |
HUMANA and Voya Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Voya Target
The main advantage of trading using opposite HUMANA and Voya Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Voya Target 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 Target will offset losses from the drop in Voya Target's long position.The idea behind HUMANA INC and Voya Target Retirement 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 Target vs. Fidelity Freedom 2035 | Voya Target vs. HUMANA INC | Voya Target vs. Barloworld Ltd ADR | Voya Target 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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