Correlation Between Humana and Tema ETF
Can any of the company-specific risk be diversified away by investing in both Humana and Tema ETF at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Humana and Tema ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and Tema ETF Trust, you can compare the effects of market volatilities on Humana and Tema ETF 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 Humana with a short position of Tema ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and Tema ETF.
Diversification Opportunities for Humana and Tema ETF
Very good diversification
The 3 months correlation between Humana and Tema is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and Tema ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tema ETF Trust and Humana 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 Humana Inc are associated (or correlated) with Tema ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tema ETF Trust has no effect on the direction of Humana i.e., Humana and Tema ETF go up and down completely randomly.
Pair Corralation between Humana and Tema ETF
Considering the 90-day investment horizon Humana Inc is expected to under-perform the Tema ETF. In addition to that, Humana is 2.15 times more volatile than Tema ETF Trust. It trades about -0.05 of its total potential returns per unit of risk. Tema ETF Trust is currently generating about -0.01 per unit of volatility. If you would invest 2,501 in Tema ETF Trust on September 12, 2024 and sell it today you would lose (185.10) from holding Tema ETF Trust or give up 7.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.81% |
| Values | Daily Returns |
Humana Inc vs. Tema ETF Trust
Performance |
| Timeline |
| Humana Inc |
| Tema ETF Trust |
Humana and Tema ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and Tema ETF
The main advantage of trading using opposite Humana and Tema ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, Tema ETF 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 Tema ETF will offset losses from the drop in Tema ETF's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| Tema ETF vs. Invesco Dynamic Building | Tema ETF vs. SCOR PK | Tema ETF vs. Morningstar Unconstrained Allocation | Tema ETF vs. Thrivent High Yield |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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