Correlation Between Aberdeen Emerging and HUMANA
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By analyzing existing cross correlation between Aberdeen Emerging Markets and HUMANA INC, you can compare the effects of market volatilities on Aberdeen 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 Aberdeen Emerging with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Emerging and HUMANA.
Diversification Opportunities for Aberdeen Emerging and HUMANA
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aberdeen and HUMANA is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen 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 Aberdeen 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 Aberdeen 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 Aberdeen Emerging i.e., Aberdeen Emerging and HUMANA go up and down completely randomly.
Pair Corralation between Aberdeen Emerging and HUMANA
Assuming the 90 days horizon Aberdeen Emerging Markets is expected to generate 0.58 times more return on investment than HUMANA. However, Aberdeen Emerging Markets is 1.72 times less risky than HUMANA. It trades about -0.08 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.16 per unit of risk. If you would invest 1,380 in Aberdeen Emerging Markets on September 1, 2024 and sell it today you would lose (23.00) from holding Aberdeen Emerging Markets or give up 1.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Aberdeen Emerging Markets vs. HUMANA INC
Performance |
| Timeline |
| Aberdeen Emerging Markets |
| HUMANA INC |
Aberdeen Emerging and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Emerging and HUMANA
The main advantage of trading using opposite Aberdeen Emerging and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen 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.| Aberdeen Emerging vs. Aberdeen Emerging Markets | Aberdeen Emerging vs. Aberdeen Emerging Markets | Aberdeen Emerging vs. Aberdeen Gbl Eq | Aberdeen Emerging vs. Aberdeen Gbl Eq |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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