Correlation Between Mfs Emerging and HUMANA
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By analyzing existing cross correlation between Mfs Emerging Markets and HUMANA INC, you can compare the effects of market volatilities on Mfs Emerging 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 Mfs Emerging with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Emerging and HUMANA.
Diversification Opportunities for Mfs Emerging and HUMANA
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mfs and HUMANA is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Emerging Markets and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Mfs Emerging 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 Mfs Emerging Markets 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 Mfs Emerging i.e., Mfs Emerging and HUMANA go up and down completely randomly.
Pair Corralation between Mfs Emerging and HUMANA
Assuming the 90 days horizon Mfs Emerging is expected to generate 262.87 times less return on investment than HUMANA. But when comparing it to its historical volatility, Mfs Emerging Markets is 169.95 times less risky than HUMANA. It trades about 0.05 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,074 in HUMANA INC on September 4, 2024 and sell it today you would lose (39.00) from holding HUMANA INC or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 93.54% |
| Values | Daily Returns |
Mfs Emerging Markets vs. HUMANA INC
Performance |
| Timeline |
| Mfs Emerging Markets |
| HUMANA INC |
Mfs Emerging and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Emerging and HUMANA
The main advantage of trading using opposite Mfs Emerging and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Emerging 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.| Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor |
| HUMANA vs. Usio Inc | HUMANA vs. MACOM Technology Solutions | HUMANA vs. Amkor Technology | HUMANA vs. Analog Devices |
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.
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