Correlation Between Vanguard Total and HUMANA
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By analyzing existing cross correlation between Vanguard Total International and HUMANA INC, you can compare the effects of market volatilities on Vanguard Total 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 Total with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Total and HUMANA.
Diversification Opportunities for Vanguard Total and HUMANA
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vanguard and HUMANA is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Total International and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Vanguard Total 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 Total International 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 Total i.e., Vanguard Total and HUMANA go up and down completely randomly.
Pair Corralation between Vanguard Total and HUMANA
Assuming the 90 days horizon Vanguard Total International is expected to generate 0.24 times more return on investment than HUMANA. However, Vanguard Total International is 4.18 times less risky than HUMANA. It trades about 0.14 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.15 per unit of risk. If you would invest 1,982 in Vanguard Total International on September 2, 2024 and sell it today you would earn a total of 34.00 from holding Vanguard Total International or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Vanguard Total International vs. HUMANA INC
Performance |
| Timeline |
| Vanguard Total Inter |
| HUMANA INC |
Vanguard Total and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Total and HUMANA
The main advantage of trading using opposite Vanguard Total and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Total 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 Vanguard Total International 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.
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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