Correlation Between HUMANA and Ashmore Emerging
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Ashmore Emerging Markets, you can compare the effects of market volatilities on HUMANA and Ashmore 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 Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Ashmore Emerging.
Diversification Opportunities for HUMANA and Ashmore Emerging
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Ashmore is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Ashmore Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashmore 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 Ashmore Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashmore Emerging Markets has no effect on the direction of HUMANA i.e., HUMANA and Ashmore Emerging go up and down completely randomly.
Pair Corralation between HUMANA and Ashmore Emerging
Assuming the 90 days trading horizon HUMANA INC is expected to generate 80.0 times more return on investment than Ashmore Emerging. However, HUMANA is 80.0 times more volatile than Ashmore Emerging Markets. It trades about 0.07 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about 0.04 per unit of risk. If you would invest 8,028 in HUMANA INC on August 30, 2024 and sell it today you would lose (333.00) from holding HUMANA INC or give up 4.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.74% |
| Values | Daily Returns |
HUMANA INC vs. Ashmore Emerging Markets
Performance |
| Timeline |
| HUMANA INC |
| Ashmore Emerging Markets |
HUMANA and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Ashmore Emerging
The main advantage of trading using opposite HUMANA and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Ashmore 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 Ashmore Emerging will offset losses from the drop in Ashmore Emerging's long position.The idea behind HUMANA INC and Ashmore 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.| Ashmore Emerging vs. Vanguard Emerging Markets | Ashmore Emerging vs. Vanguard Emerging Markets | Ashmore Emerging vs. HUMANA INC | Ashmore Emerging vs. Aquagold International |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |