Correlation Between HUMANA and WBI Power
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By analyzing existing cross correlation between HUMANA INC and WBI Power Factor, you can compare the effects of market volatilities on HUMANA and WBI Power 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 WBI Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and WBI Power.
Diversification Opportunities for HUMANA and WBI Power
Good diversification
The 3 months correlation between HUMANA and WBI is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and WBI Power Factor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WBI Power Factor 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 WBI Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WBI Power Factor has no effect on the direction of HUMANA i.e., HUMANA and WBI Power go up and down completely randomly.
Pair Corralation between HUMANA and WBI Power
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the WBI Power. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.04 times less risky than WBI Power. The bond trades about -0.18 of its potential returns per unit of risk. The WBI Power Factor is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,999 in WBI Power Factor on September 12, 2024 and sell it today you would earn a total of 144.00 from holding WBI Power Factor or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.88% |
| Values | Daily Returns |
HUMANA INC vs. WBI Power Factor
Performance |
| Timeline |
| HUMANA INC |
| WBI Power Factor |
HUMANA and WBI Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and WBI Power
The main advantage of trading using opposite HUMANA and WBI Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, WBI Power 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 WBI Power will offset losses from the drop in WBI Power's long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
| WBI Power vs. Freedom Day Dividend | WBI Power vs. Franklin Templeton ETF | WBI Power vs. iShares MSCI China | WBI Power vs. Tidal Trust II |
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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