Correlation Between Franklin Credit and HUMANA
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By analyzing existing cross correlation between Franklin Credit Management and HUMANA INC, you can compare the effects of market volatilities on Franklin Credit 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 Franklin Credit with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Credit and HUMANA.
Diversification Opportunities for Franklin Credit and HUMANA
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and HUMANA is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Credit Management and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Franklin Credit 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 Franklin Credit Management 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 Franklin Credit i.e., Franklin Credit and HUMANA go up and down completely randomly.
Pair Corralation between Franklin Credit and HUMANA
Given the investment horizon of 90 days Franklin Credit is expected to generate 15.04 times less return on investment than HUMANA. But when comparing it to its historical volatility, Franklin Credit Management is 6.73 times less risky than HUMANA. It trades about 0.03 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 8,012 in HUMANA INC on September 2, 2024 and sell it today you would lose (317.00) from holding HUMANA INC or give up 3.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.95% |
| Values | Daily Returns |
Franklin Credit Management vs. HUMANA INC
Performance |
| Timeline |
| Franklin Credit Mana |
| HUMANA INC |
Franklin Credit and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Credit and HUMANA
The main advantage of trading using opposite Franklin Credit and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Credit 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.| Franklin Credit vs. Global Healthcare REIT | Franklin Credit vs. Freedom Bank of | Franklin Credit vs. Hinto Energy | Franklin Credit vs. Ensurge |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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