Correlation Between HUMANA and Westcore Plus
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By analyzing existing cross correlation between HUMANA INC and Westcore Plus Bond, you can compare the effects of market volatilities on HUMANA and Westcore Plus 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 Westcore Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Westcore Plus.
Diversification Opportunities for HUMANA and Westcore Plus
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Westcore is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Westcore Plus Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westcore Plus Bond 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 Westcore Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westcore Plus Bond has no effect on the direction of HUMANA i.e., HUMANA and Westcore Plus go up and down completely randomly.
Pair Corralation between HUMANA and Westcore Plus
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Westcore Plus. In addition to that, HUMANA is 3.77 times more volatile than Westcore Plus Bond. It trades about -0.16 of its total potential returns per unit of risk. Westcore Plus Bond is currently generating about 0.1 per unit of volatility. If you would invest 939.00 in Westcore Plus Bond on September 1, 2024 and sell it today you would earn a total of 8.00 from holding Westcore Plus Bond or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Westcore Plus Bond
Performance |
| Timeline |
| HUMANA INC |
| Westcore Plus Bond |
HUMANA and Westcore Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Westcore Plus
The main advantage of trading using opposite HUMANA and Westcore Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Westcore Plus 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 Westcore Plus will offset losses from the drop in Westcore Plus' long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Westcore Plus vs. Large Cap Fund | Westcore Plus vs. James Balanced Golden | Westcore Plus vs. Aberdeen Global High | Westcore Plus vs. Loomis Sayles Bond |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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