Correlation Between HUMANA and Vanguard High-yield
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By analyzing existing cross correlation between HUMANA INC and Vanguard High Yield Corporate, you can compare the effects of market volatilities on HUMANA and Vanguard High-yield 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 High-yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Vanguard High-yield.
Diversification Opportunities for HUMANA and Vanguard High-yield
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Vanguard is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Vanguard High Yield Corporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard High Yield 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 High-yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard High Yield has no effect on the direction of HUMANA i.e., HUMANA and Vanguard High-yield go up and down completely randomly.
Pair Corralation between HUMANA and Vanguard High-yield
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Vanguard High-yield. In addition to that, HUMANA is 6.68 times more volatile than Vanguard High Yield Corporate. It trades about -0.23 of its total potential returns per unit of risk. Vanguard High Yield Corporate is currently generating about 0.16 per unit of volatility. If you would invest 543.00 in Vanguard High Yield Corporate on August 24, 2024 and sell it today you would earn a total of 3.00 from holding Vanguard High Yield Corporate or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Vanguard High Yield Corporate
Performance |
| Timeline |
| HUMANA INC |
| Vanguard High Yield |
HUMANA and Vanguard High-yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Vanguard High-yield
The main advantage of trading using opposite HUMANA and Vanguard High-yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Vanguard High-yield 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 High-yield will offset losses from the drop in Vanguard High-yield's long position.| HUMANA vs. Western Digital | HUMANA vs. Arrow Electronics | HUMANA vs. Anheuser Busch Inbev | HUMANA vs. Keurig Dr Pepper |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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