Correlation Between VivoPower International and HUMANA
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By analyzing existing cross correlation between VivoPower International PLC and HUMANA INC, you can compare the effects of market volatilities on VivoPower International 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 VivoPower International with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of VivoPower International and HUMANA.
Diversification Opportunities for VivoPower International and HUMANA
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between VivoPower and HUMANA is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding VivoPower International PLC and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and VivoPower International 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 VivoPower International PLC 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 VivoPower International i.e., VivoPower International and HUMANA go up and down completely randomly.
Pair Corralation between VivoPower International and HUMANA
Given the investment horizon of 90 days VivoPower International PLC is expected to generate 38.4 times more return on investment than HUMANA. However, VivoPower International is 38.4 times more volatile than HUMANA INC. It trades about 0.1 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.08 per unit of risk. If you would invest 80.00 in VivoPower International PLC on August 24, 2024 and sell it today you would earn a total of 10.00 from holding VivoPower International PLC or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
VivoPower International PLC vs. HUMANA INC
Performance |
| Timeline |
| VivoPower International |
| HUMANA INC |
VivoPower International and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VivoPower International and HUMANA
The main advantage of trading using opposite VivoPower International and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VivoPower International 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.| VivoPower International vs. Emeren Group | VivoPower International vs. Tigo Energy | VivoPower International vs. Sunrun Inc | VivoPower International vs. Sunnova Energy International |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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