Correlation Between Tema ETF and Humana
Can any of the company-specific risk be diversified away by investing in both Tema ETF and Humana 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 Tema ETF and Humana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tema ETF Trust and Humana Inc, you can compare the effects of market volatilities on Tema ETF 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 Tema ETF with a short position of Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tema ETF and Humana.
Diversification Opportunities for Tema ETF and Humana
Very good diversification
The 3 months correlation between Tema and Humana is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Tema ETF Trust and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc and Tema ETF 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 Tema ETF Trust 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 Tema ETF i.e., Tema ETF and Humana go up and down completely randomly.
Pair Corralation between Tema ETF and Humana
Considering the 90-day investment horizon Tema ETF Trust is expected to generate 0.47 times more return on investment than Humana. However, Tema ETF Trust is 2.15 times less risky than Humana. It trades about -0.01 of its potential returns per unit of risk. Humana Inc is currently generating about -0.05 per unit of risk. 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 |
Tema ETF Trust vs. Humana Inc
Performance |
| Timeline |
| Tema ETF Trust |
| Humana Inc |
Tema ETF and Humana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tema ETF and Humana
The main advantage of trading using opposite Tema ETF and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tema ETF 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.| Tema ETF vs. Invesco Dynamic Building | Tema ETF vs. SCOR PK | Tema ETF vs. Morningstar Unconstrained Allocation | Tema ETF vs. Thrivent High Yield |
| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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