Correlation Between HUMANA and Aberdeen Emerging
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By analyzing existing cross correlation between HUMANA INC and Aberdeen Emerging Markts, you can compare the effects of market volatilities on HUMANA and Aberdeen Emerging 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 Aberdeen Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Aberdeen Emerging.
Diversification Opportunities for HUMANA and Aberdeen Emerging
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Aberdeen is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Aberdeen Emerging Markts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Emerging Markts 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 Aberdeen Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Emerging Markts has no effect on the direction of HUMANA i.e., HUMANA and Aberdeen Emerging go up and down completely randomly.
Pair Corralation between HUMANA and Aberdeen Emerging
Assuming the 90 days trading horizon HUMANA INC is expected to generate 102.49 times more return on investment than Aberdeen Emerging. However, HUMANA is 102.49 times more volatile than Aberdeen Emerging Markts. It trades about 0.08 of its potential returns per unit of risk. Aberdeen Emerging Markts is currently generating about 0.03 per unit of risk. If you would invest 7,917 in HUMANA INC on August 31, 2024 and sell it today you would lose (222.00) from holding HUMANA INC or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.32% |
| Values | Daily Returns |
HUMANA INC vs. Aberdeen Emerging Markts
Performance |
| Timeline |
| HUMANA INC |
| Aberdeen Emerging Markts |
HUMANA and Aberdeen Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Aberdeen Emerging
The main advantage of trading using opposite HUMANA and Aberdeen Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Aberdeen Emerging 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 Aberdeen Emerging will offset losses from the drop in Aberdeen Emerging's long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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