Correlation Between Mfs Global and HUMANA
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By analyzing existing cross correlation between Mfs Global Real and HUMANA INC, you can compare the effects of market volatilities on Mfs Global 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 Mfs Global with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Global and HUMANA.
Diversification Opportunities for Mfs Global and HUMANA
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mfs and HUMANA is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Global Real and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Mfs Global 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 Mfs Global Real 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 Mfs Global i.e., Mfs Global and HUMANA go up and down completely randomly.
Pair Corralation between Mfs Global and HUMANA
Assuming the 90 days horizon Mfs Global Real is expected to generate 0.61 times more return on investment than HUMANA. However, Mfs Global Real is 1.65 times less risky than HUMANA. It trades about -0.15 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.19 per unit of risk. If you would invest 1,756 in Mfs Global Real on September 12, 2024 and sell it today you would lose (38.00) from holding Mfs Global Real or give up 2.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Global Real vs. HUMANA INC
Performance |
| Timeline |
| Mfs Global Real |
| HUMANA INC |
Mfs Global and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Global and HUMANA
The main advantage of trading using opposite Mfs Global and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Global 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.| Mfs Global vs. HUMANA INC | Mfs Global vs. Barloworld Ltd ADR | Mfs Global vs. Morningstar Unconstrained Allocation | Mfs Global 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 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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