Correlation Between Franklin FTSE and HUMANA
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By analyzing existing cross correlation between Franklin FTSE Australia and HUMANA INC, you can compare the effects of market volatilities on Franklin FTSE 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 FTSE with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin FTSE and HUMANA.
Diversification Opportunities for Franklin FTSE and HUMANA
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and HUMANA is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Franklin FTSE Australia and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Franklin FTSE 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 FTSE Australia 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 FTSE i.e., Franklin FTSE and HUMANA go up and down completely randomly.
Pair Corralation between Franklin FTSE and HUMANA
Given the investment horizon of 90 days Franklin FTSE Australia is expected to generate 0.93 times more return on investment than HUMANA. However, Franklin FTSE Australia is 1.07 times less risky than HUMANA. It trades about 0.17 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.21 per unit of risk. If you would invest 3,006 in Franklin FTSE Australia on September 1, 2024 and sell it today you would earn a total of 118.00 from holding Franklin FTSE Australia or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Franklin FTSE Australia vs. HUMANA INC
Performance |
| Timeline |
| Franklin FTSE Australia |
| HUMANA INC |
Franklin FTSE and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin FTSE and HUMANA
The main advantage of trading using opposite Franklin FTSE and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin FTSE 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 FTSE vs. HUMANA INC | Franklin FTSE vs. SCOR PK | Franklin FTSE vs. Aquagold International | Franklin FTSE vs. Ab Pennsylvania Portfolio |
| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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