Correlation Between HUMANA and Vanguard Information
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By analyzing existing cross correlation between HUMANA INC and Vanguard Information Technology, you can compare the effects of market volatilities on HUMANA and Vanguard Information 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 Vanguard Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Vanguard Information.
Diversification Opportunities for HUMANA and Vanguard Information
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Vanguard is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Vanguard Information Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Information 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 Vanguard Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Information has no effect on the direction of HUMANA i.e., HUMANA and Vanguard Information go up and down completely randomly.
Pair Corralation between HUMANA and Vanguard Information
Assuming the 90 days trading horizon HUMANA is expected to generate 2.3 times less return on investment than Vanguard Information. But when comparing it to its historical volatility, HUMANA INC is 1.99 times less risky than Vanguard Information. It trades about 0.02 of its potential returns per unit of risk. Vanguard Information Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 27,083 in Vanguard Information Technology on March 7, 2024 and sell it today you would earn a total of 449.00 from holding Vanguard Information Technology or generate 1.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.39% |
Values | Daily Returns |
HUMANA INC vs. Vanguard Information Technolog
Performance |
Timeline |
HUMANA INC |
Vanguard Information |
HUMANA and Vanguard Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HUMANA and Vanguard Information
The main advantage of trading using opposite HUMANA and Vanguard Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Vanguard Information 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 Vanguard Information will offset losses from the drop in Vanguard Information's long position.HUMANA vs. AEP TEX INC | HUMANA vs. US BANK NATIONAL | HUMANA vs. Pan Global Resources | HUMANA vs. Southern Company |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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