Correlation Between Voya Cbre and HUMANA

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Can any of the company-specific risk be diversified away by investing in both Voya Cbre and HUMANA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Voya Cbre and HUMANA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Cbre Global and HUMANA INC, you can compare the effects of market volatilities on Voya Cbre 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 Voya Cbre with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Cbre and HUMANA.

Diversification Opportunities for Voya Cbre and HUMANA

-0.38
  Correlation Coefficient

Very good diversification

The 3 months correlation between Voya and HUMANA is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Voya Cbre Global and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Voya Cbre 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 Voya Cbre Global 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 has no effect on the direction of Voya Cbre i.e., Voya Cbre and HUMANA go up and down completely randomly.

Pair Corralation between Voya Cbre and HUMANA

Assuming the 90 days horizon Voya Cbre Global is expected to generate 0.92 times more return on investment than HUMANA. However, Voya Cbre Global is 1.09 times less risky than HUMANA. It trades about 0.14 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.04 per unit of risk. If you would invest  1,258  in Voya Cbre Global on September 1, 2024 and sell it today you would earn a total of  144.00  from holding Voya Cbre Global or generate 11.45% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy97.64%
ValuesDaily Returns

Voya Cbre Global  vs.  HUMANA INC

 Performance 
       Timeline  
Voya Cbre Global 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Voya Cbre Global are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Voya Cbre is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
HUMANA INC 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days HUMANA INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for HUMANA INC investors.

Voya Cbre and HUMANA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Voya Cbre and HUMANA

The main advantage of trading using opposite Voya Cbre and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Cbre 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.
The idea behind Voya Cbre Global and HUMANA INC 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.
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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