Correlation Between HUMANA and Mfs Emerging
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By analyzing existing cross correlation between HUMANA INC and Mfs Emerging Markets, you can compare the effects of market volatilities on HUMANA and Mfs 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 Mfs Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Mfs Emerging.
Diversification Opportunities for HUMANA and Mfs Emerging
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Mfs is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Mfs Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs 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 Mfs Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Emerging Markets has no effect on the direction of HUMANA i.e., HUMANA and Mfs Emerging go up and down completely randomly.
Pair Corralation between HUMANA and Mfs Emerging
Assuming the 90 days trading horizon HUMANA INC is expected to generate 1.63 times more return on investment than Mfs Emerging. However, HUMANA is 1.63 times more volatile than Mfs Emerging Markets. It trades about -0.12 of its potential returns per unit of risk. Mfs Emerging Markets is currently generating about -0.25 per unit of risk. If you would invest 8,306 in HUMANA INC on September 3, 2024 and sell it today you would lose (271.00) from holding HUMANA INC or give up 3.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Mfs Emerging Markets
Performance |
| Timeline |
| HUMANA INC |
| Mfs Emerging Markets |
HUMANA and Mfs Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Mfs Emerging
The main advantage of trading using opposite HUMANA and Mfs Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Mfs 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 Mfs Emerging will offset losses from the drop in Mfs Emerging's long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
| Mfs Emerging vs. HUMANA INC | Mfs Emerging vs. Aquagold International | Mfs Emerging vs. Barloworld Ltd ADR | Mfs Emerging vs. Morningstar Unconstrained Allocation |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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