Correlation Between Visa and HUMANA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Visa Class A and HUMANA INC 395, you can compare the effects of market volatilities on Visa and HUMANA 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 Visa with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and HUMANA.
Diversification Opportunities for Visa and HUMANA
Good diversification
The 3 months correlation between Visa and HUMANA is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and HUMANA INC 395 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC 5 and Visa 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 Visa Class A are associated (or correlated) with HUMANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUMANA INC 5 has no effect on the direction of Visa i.e., Visa and HUMANA go up and down completely randomly.
Pair Corralation between Visa and HUMANA
Taking into account the 90-day investment horizon Visa Class A is expected to generate 1.64 times more return on investment than HUMANA. However, Visa is 1.64 times more volatile than HUMANA INC 395. It trades about 0.33 of its potential returns per unit of risk. HUMANA INC 395 is currently generating about -0.19 per unit of risk. If you would invest 34,247 in Visa Class A on December 1, 2024 and sell it today you would earn a total of 2,024 from holding Visa Class A or generate 5.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Visa Class A vs. HUMANA INC 395
Performance |
| Timeline |
| Visa Class A |
| HUMANA INC 5 |
Visa and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and HUMANA
The main advantage of trading using opposite Visa and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, HUMANA 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 HUMANA will offset losses from the drop in HUMANA's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| HUMANA vs. Ryanair Holdings PLC | HUMANA vs. ChampionX | HUMANA vs. American Airlines Group | HUMANA vs. Volaris |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |