Correlation Between Humana and Schwab International
Can any of the company-specific risk be diversified away by investing in both Humana and Schwab International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Humana and Schwab International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and Schwab International Equity, you can compare the effects of market volatilities on Humana and Schwab International 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 Humana with a short position of Schwab International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and Schwab International.
Diversification Opportunities for Humana and Schwab International
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Humana and Schwab is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and Schwab International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schwab International and Humana 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 Humana Inc are associated (or correlated) with Schwab International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schwab International has no effect on the direction of Humana i.e., Humana and Schwab International go up and down completely randomly.
Pair Corralation between Humana and Schwab International
Considering the 90-day investment horizon Humana Inc is expected to under-perform the Schwab International. In addition to that, Humana is 3.99 times more volatile than Schwab International Equity. It trades about -0.2 of its total potential returns per unit of risk. Schwab International Equity is currently generating about -0.18 per unit of volatility. If you would invest 3,886 in Schwab International Equity on February 1, 2024 and sell it today you would lose (119.00) from holding Schwab International Equity or give up 3.06% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Humana Inc vs. Schwab International Equity
Performance |
Timeline |
Humana Inc |
Schwab International |
Humana and Schwab International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Humana and Schwab International
The main advantage of trading using opposite Humana and Schwab International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, Schwab International 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 Schwab International will offset losses from the drop in Schwab International's long position.Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
Schwab International vs. Invesco PureBeta MSCI | Schwab International vs. HUMANA INC | Schwab International vs. Aquagold International | Schwab International vs. Barloworld Ltd 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Transaction History View history of all your transactions and understand their impact on performance | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |