Correlation Between HUMANA and IShares Core
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and iShares Core SP, you can compare the effects of market volatilities on HUMANA and IShares Core 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 IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and IShares Core.
Diversification Opportunities for HUMANA and IShares Core
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and IShares is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and iShares Core SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core SP 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 IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core SP has no effect on the direction of HUMANA i.e., HUMANA and IShares Core go up and down completely randomly.
Pair Corralation between HUMANA and IShares Core
Assuming the 90 days trading horizon HUMANA INC is expected to generate 2.21 times more return on investment than IShares Core. However, HUMANA is 2.21 times more volatile than iShares Core SP. It trades about 0.07 of its potential returns per unit of risk. iShares Core SP is currently generating about 0.07 per unit of risk. If you would invest 7,927 in HUMANA INC on March 8, 2024 and sell it today you would earn a total of 169.00 from holding HUMANA INC or generate 2.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
HUMANA INC vs. iShares Core SP
Performance |
Timeline |
HUMANA INC |
iShares Core SP |
HUMANA and IShares Core Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HUMANA and IShares Core
The main advantage of trading using opposite HUMANA and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, IShares Core 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 IShares Core will offset losses from the drop in IShares Core's long position.The idea behind HUMANA INC and iShares Core SP 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.IShares Core vs. Vanguard High Dividend | IShares Core vs. iShares SP 500 | IShares Core vs. iShares Select Dividend |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
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 | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Transaction History View history of all your transactions and understand their impact on performance |