Correlation Between HUMANA and WisdomTree Emerging
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By analyzing existing cross correlation between HUMANA INC and WisdomTree Emerging Markets, you can compare the effects of market volatilities on HUMANA and WisdomTree 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 WisdomTree Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and WisdomTree Emerging.
Diversification Opportunities for HUMANA and WisdomTree Emerging
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUMANA and WisdomTree is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and WisdomTree Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Emerging 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 WisdomTree Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Emerging has no effect on the direction of HUMANA i.e., HUMANA and WisdomTree Emerging go up and down completely randomly.
Pair Corralation between HUMANA and WisdomTree Emerging
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the WisdomTree Emerging. In addition to that, HUMANA is 1.93 times more volatile than WisdomTree Emerging Markets. It trades about -0.09 of its total potential returns per unit of risk. WisdomTree Emerging Markets is currently generating about 0.27 per unit of volatility. If you would invest 4,864 in WisdomTree Emerging Markets on November 27, 2024 and sell it today you would earn a total of 132.00 from holding WisdomTree Emerging Markets or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. WisdomTree Emerging Markets
Performance |
| Timeline |
| HUMANA INC |
| WisdomTree Emerging |
HUMANA and WisdomTree Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and WisdomTree Emerging
The main advantage of trading using opposite HUMANA and WisdomTree Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, WisdomTree 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 WisdomTree Emerging will offset losses from the drop in WisdomTree Emerging's long position.| HUMANA vs. Amkor Technology | HUMANA vs. Primo Brands | HUMANA vs. The Coca Cola | HUMANA vs. Brandywine Realty Trust |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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