Correlation Between HUMANA and Ep Emerging
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By analyzing existing cross correlation between HUMANA INC and Ep Emerging Markets, you can compare the effects of market volatilities on HUMANA and Ep 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 Ep Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Ep Emerging.
Diversification Opportunities for HUMANA and Ep Emerging
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and EPASX is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Ep Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ep 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 Ep Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ep Emerging Markets has no effect on the direction of HUMANA i.e., HUMANA and Ep Emerging go up and down completely randomly.
Pair Corralation between HUMANA and Ep Emerging
Assuming the 90 days trading horizon HUMANA is expected to generate 2.4 times less return on investment than Ep Emerging. But when comparing it to its historical volatility, HUMANA INC is 1.44 times less risky than Ep Emerging. It trades about 0.02 of its potential returns per unit of risk. Ep Emerging Markets is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 932.00 in Ep Emerging Markets on August 26, 2024 and sell it today you would earn a total of 55.00 from holding Ep Emerging Markets or generate 5.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.19% |
| Values | Daily Returns |
HUMANA INC vs. Ep Emerging Markets
Performance |
| Timeline |
| HUMANA INC |
| Ep Emerging Markets |
HUMANA and Ep Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Ep Emerging
The main advantage of trading using opposite HUMANA and Ep Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Ep 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 Ep Emerging will offset losses from the drop in Ep Emerging's long position.| HUMANA vs. Balchem | HUMANA vs. Stepan Company | HUMANA vs. Videolocity International | HUMANA vs. Luxfer Holdings PLC |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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