Correlation Between Franklin Real and HUMANA
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By analyzing existing cross correlation between Franklin Real Estate and HUMANA INC, you can compare the effects of market volatilities on Franklin Real 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 Real with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Real and HUMANA.
Diversification Opportunities for Franklin Real and HUMANA
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FRANKLIN and HUMANA is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Real Estate and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Franklin Real 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 Real Estate 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 Real i.e., Franklin Real and HUMANA go up and down completely randomly.
Pair Corralation between Franklin Real and HUMANA
Assuming the 90 days horizon Franklin Real Estate is expected to generate 1.5 times more return on investment than HUMANA. However, Franklin Real is 1.5 times more volatile than HUMANA INC. It trades about 0.16 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.02 per unit of risk. If you would invest 1,622 in Franklin Real Estate on September 3, 2024 and sell it today you would earn a total of 365.00 from holding Franklin Real Estate or generate 22.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.95% |
| Values | Daily Returns |
Franklin Real Estate vs. HUMANA INC
Performance |
| Timeline |
| Franklin Real Estate |
| HUMANA INC |
Franklin Real and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Real and HUMANA
The main advantage of trading using opposite Franklin Real and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Real 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 Real vs. Franklin Natural Resources | Franklin Real vs. Franklin Small Cap | Franklin Real vs. Templeton Developing Markets | Franklin Real vs. Franklin Balance Sheet |
| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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