Correlation Between HUMANA and Cullen Emerging
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By analyzing existing cross correlation between HUMANA INC and Cullen Emerging Markets, you can compare the effects of market volatilities on HUMANA and Cullen 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 Cullen Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Cullen Emerging.
Diversification Opportunities for HUMANA and Cullen Emerging
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Cullen is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Cullen Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen Emerging Markets 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 Cullen Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen Emerging Markets has no effect on the direction of HUMANA i.e., HUMANA and Cullen Emerging go up and down completely randomly.
Pair Corralation between HUMANA and Cullen Emerging
Assuming the 90 days trading horizon HUMANA INC is expected to generate 119.42 times more return on investment than Cullen Emerging. However, HUMANA is 119.42 times more volatile than Cullen Emerging Markets. It trades about 0.08 of its potential returns per unit of risk. Cullen Emerging Markets is currently generating about 0.07 per unit of risk. If you would invest 7,917 in HUMANA INC on September 12, 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 | 97.59% |
| Values | Daily Returns |
HUMANA INC vs. Cullen Emerging Markets
Performance |
| Timeline |
| HUMANA INC |
| Cullen Emerging Markets |
HUMANA and Cullen Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Cullen Emerging
The main advantage of trading using opposite HUMANA and Cullen Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Cullen 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 Cullen Emerging will offset losses from the drop in Cullen Emerging's long position.The idea behind HUMANA INC and Cullen Emerging Markets pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Cullen Emerging vs. Touchstone Large Cap | Cullen Emerging vs. Fidelity Series 1000 | Cullen Emerging vs. Lord Abbett Affiliated | Cullen Emerging vs. Transamerica Large Cap |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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