Correlation Between Vanguard Ultra-short-term and HUMANA
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By analyzing existing cross correlation between Vanguard Ultra Short Term Bond and HUMANA INC, you can compare the effects of market volatilities on Vanguard Ultra-short-term 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 Ultra-short-term with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Ultra-short-term and HUMANA.
Diversification Opportunities for Vanguard Ultra-short-term and HUMANA
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vanguard and HUMANA is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Ultra Short Term Bond and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Vanguard Ultra-short-term 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 Ultra Short Term Bond 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 Ultra-short-term i.e., Vanguard Ultra-short-term and HUMANA go up and down completely randomly.
Pair Corralation between Vanguard Ultra-short-term and HUMANA
Assuming the 90 days horizon Vanguard Ultra-short-term is expected to generate 276.84 times less return on investment than HUMANA. But when comparing it to its historical volatility, Vanguard Ultra Short Term Bond is 1163.09 times less risky than HUMANA. It trades about 0.3 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 Ultra Short Term Bond vs. HUMANA INC
Performance |
| Timeline |
| Vanguard Ultra-short-term |
| HUMANA INC |
Vanguard Ultra-short-term and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Ultra-short-term and HUMANA
The main advantage of trading using opposite Vanguard Ultra-short-term and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Ultra-short-term 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 Ultra Short Term Bond 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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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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