Correlation Between HUMANA and Dfa Emerging
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By analyzing existing cross correlation between HUMANA INC and Dfa Emerging Markets, you can compare the effects of market volatilities on HUMANA and Dfa 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 Dfa Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Dfa Emerging.
Diversification Opportunities for HUMANA and Dfa Emerging
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Dfa is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Dfa Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dfa 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 Dfa Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dfa Emerging Markets has no effect on the direction of HUMANA i.e., HUMANA and Dfa Emerging go up and down completely randomly.
Pair Corralation between HUMANA and Dfa Emerging
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Dfa Emerging. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.25 times less risky than Dfa Emerging. The bond trades about -0.02 of its potential returns per unit of risk. The Dfa Emerging Markets is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,314 in Dfa Emerging Markets on September 2, 2024 and sell it today you would earn a total of 178.00 from holding Dfa Emerging Markets or generate 13.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.58% |
| Values | Daily Returns |
HUMANA INC vs. Dfa Emerging Markets
Performance |
| Timeline |
| HUMANA INC |
| Dfa Emerging Markets |
HUMANA and Dfa Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Dfa Emerging
The main advantage of trading using opposite HUMANA and Dfa Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Dfa 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 Dfa Emerging will offset losses from the drop in Dfa Emerging's long position.The idea behind HUMANA INC and Dfa 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.| Dfa Emerging vs. Pace High Yield | Dfa Emerging vs. Western Asset High | Dfa Emerging vs. Msift High Yield | Dfa Emerging vs. Prudential Short Duration |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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