Correlation Between Vanguard Small-cap and HUMANA
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By analyzing existing cross correlation between Vanguard Small Cap Index and HUMANA INC, you can compare the effects of market volatilities on Vanguard Small-cap 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 Small-cap with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Small-cap and HUMANA.
Diversification Opportunities for Vanguard Small-cap and HUMANA
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vanguard and HUMANA is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Small Cap Index and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Vanguard Small-cap 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 Small Cap Index 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 Small-cap i.e., Vanguard Small-cap and HUMANA go up and down completely randomly.
Pair Corralation between Vanguard Small-cap and HUMANA
Assuming the 90 days horizon Vanguard Small Cap Index is expected to generate 1.05 times more return on investment than HUMANA. However, Vanguard Small-cap is 1.05 times more volatile than HUMANA INC. It trades about 0.39 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.21 per unit of risk. If you would invest 11,289 in Vanguard Small Cap Index on September 1, 2024 and sell it today you would earn a total of 1,153 from holding Vanguard Small Cap Index or generate 10.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Vanguard Small Cap Index vs. HUMANA INC
Performance |
| Timeline |
| Vanguard Small Cap |
| HUMANA INC |
Vanguard Small-cap and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Small-cap and HUMANA
The main advantage of trading using opposite Vanguard Small-cap and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Small-cap 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 Small-cap vs. Vanguard Mid Cap Index | Vanguard Small-cap vs. Vanguard 500 Index | Vanguard Small-cap vs. Vanguard Emerging Markets | Vanguard Small-cap vs. Vanguard Reit Index |
| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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