Correlation Between ProShares Short and HUMANA
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By analyzing existing cross correlation between ProShares Short Dow30 and HUMANA INC, you can compare the effects of market volatilities on ProShares Short 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 ProShares Short with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Short and HUMANA.
Diversification Opportunities for ProShares Short and HUMANA
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ProShares and HUMANA is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Short Dow30 and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and ProShares Short 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 ProShares Short Dow30 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 ProShares Short i.e., ProShares Short and HUMANA go up and down completely randomly.
Pair Corralation between ProShares Short and HUMANA
Considering the 90-day investment horizon ProShares Short Dow30 is expected to under-perform the HUMANA. But the etf apears to be less risky and, when comparing its historical volatility, ProShares Short Dow30 is 2.99 times less risky than HUMANA. The etf trades about -0.22 of its potential returns per unit of risk. The HUMANA INC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 7,789 in HUMANA INC on February 22, 2024 and sell it today you would earn a total of 169.00 from holding HUMANA INC or generate 2.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.65% |
Values | Daily Returns |
ProShares Short Dow30 vs. HUMANA INC
Performance |
Timeline |
ProShares Short Dow30 |
HUMANA INC |
ProShares Short and HUMANA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ProShares Short and HUMANA
The main advantage of trading using opposite ProShares Short and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Short 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.ProShares Short vs. ProShares Short QQQ | ProShares Short vs. ProShares Short SP500 | ProShares Short vs. ProShares UltraShort Dow30 | ProShares Short vs. ProShares Short Russell2000 |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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