Correlation Between Franklin Mutual and HUMANA
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By analyzing existing cross correlation between Franklin Mutual Global and HUMANA INC, you can compare the effects of market volatilities on Franklin Mutual 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 Mutual with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and HUMANA.
Diversification Opportunities for Franklin Mutual and HUMANA
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Franklin and HUMANA is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Franklin Mutual 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 Mutual Global 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 Mutual i.e., Franklin Mutual and HUMANA go up and down completely randomly.
Pair Corralation between Franklin Mutual and HUMANA
Assuming the 90 days horizon Franklin Mutual Global is expected to generate 0.63 times more return on investment than HUMANA. However, Franklin Mutual Global is 1.6 times less risky than HUMANA. It trades about 0.01 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.28 per unit of risk. If you would invest 3,277 in Franklin Mutual Global on August 25, 2024 and sell it today you would earn a total of 2.00 from holding Franklin Mutual Global or generate 0.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Franklin Mutual Global vs. HUMANA INC
Performance |
| Timeline |
| Franklin Mutual Global |
| HUMANA INC |
Franklin Mutual and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and HUMANA
The main advantage of trading using opposite Franklin Mutual and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual 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 Mutual vs. Franklin Mutual Global | Franklin Mutual vs. T Rowe Price | Franklin Mutual vs. HUMANA INC | Franklin Mutual vs. Aquagold International |
| HUMANA vs. Drilling Tools International | HUMANA vs. Delek Drilling | HUMANA vs. Vera Bradley | HUMANA vs. Duluth Holdings |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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