Correlation Between Vanguard Diversified and HUMANA
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By analyzing existing cross correlation between Vanguard Diversified Equity and HUMANA INC, you can compare the effects of market volatilities on Vanguard Diversified 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 Vanguard Diversified with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Diversified and HUMANA.
Diversification Opportunities for Vanguard Diversified and HUMANA
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vanguard and HUMANA is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Diversified Equity and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Vanguard Diversified 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 Vanguard Diversified Equity 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 Vanguard Diversified i.e., Vanguard Diversified and HUMANA go up and down completely randomly.
Pair Corralation between Vanguard Diversified and HUMANA
Assuming the 90 days horizon Vanguard Diversified is expected to generate 68.4 times less return on investment than HUMANA. But when comparing it to its historical volatility, Vanguard Diversified Equity is 84.99 times less risky than HUMANA. It trades about 0.09 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 7,962 in HUMANA INC on August 24, 2024 and sell it today you would earn a total of 73.00 from holding HUMANA INC or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.75% |
| Values | Daily Returns |
Vanguard Diversified Equity vs. HUMANA INC
Performance |
| Timeline |
| Vanguard Diversified |
| HUMANA INC |
Vanguard Diversified and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Diversified and HUMANA
The main advantage of trading using opposite Vanguard Diversified and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Diversified 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.| Vanguard Diversified vs. HUMANA INC | Vanguard Diversified vs. Aquagold International | Vanguard Diversified vs. Barloworld Ltd ADR | Vanguard Diversified vs. Morningstar Unconstrained Allocation |
| HUMANA vs. Drilling Tools International | HUMANA vs. Delek Drilling | HUMANA vs. Vera Bradley | HUMANA vs. Duluth Holdings |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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