Correlation Between Tcw Emerging and HUMANA
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By analyzing existing cross correlation between Tcw Emerging Markets and HUMANA INC, you can compare the effects of market volatilities on Tcw 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 Tcw Emerging with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tcw Emerging and HUMANA.
Diversification Opportunities for Tcw Emerging and HUMANA
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TCW and HUMANA is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Tcw 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 Tcw 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 Tcw 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 Tcw Emerging i.e., Tcw Emerging and HUMANA go up and down completely randomly.
Pair Corralation between Tcw Emerging and HUMANA
Assuming the 90 days horizon Tcw Emerging Markets is expected to under-perform the HUMANA. But the mutual fund apears to be less risky and, when comparing its historical volatility, Tcw Emerging Markets is 1.32 times less risky than HUMANA. The mutual fund trades about -0.15 of its potential returns per unit of risk. The HUMANA INC is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 8,090 in HUMANA INC on September 4, 2024 and sell it today you would lose (55.00) from holding HUMANA INC or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Tcw Emerging Markets vs. HUMANA INC
Performance |
| Timeline |
| Tcw Emerging Markets |
| HUMANA INC |
Tcw Emerging and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tcw Emerging and HUMANA
The main advantage of trading using opposite Tcw Emerging and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tcw 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.| Tcw Emerging vs. Tcw Emerging Markets | Tcw Emerging vs. Riverpark Large Growth | Tcw Emerging vs. Artisan Global Opportunities | Tcw Emerging vs. Cambiar Small Cap |
| HUMANA vs. Usio Inc | HUMANA vs. MACOM Technology Solutions | HUMANA vs. Amkor Technology | HUMANA vs. Analog Devices |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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