Correlation Between HUMANA and Templeton Global
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By analyzing existing cross correlation between HUMANA INC and Templeton Global Bond, you can compare the effects of market volatilities on HUMANA and Templeton Global 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 Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Templeton Global.
Diversification Opportunities for HUMANA and Templeton Global
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUMANA and Templeton is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Templeton Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Global Bond 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 Templeton Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Global Bond has no effect on the direction of HUMANA i.e., HUMANA and Templeton Global go up and down completely randomly.
Pair Corralation between HUMANA and Templeton Global
Assuming the 90 days trading horizon HUMANA INC is expected to generate 1.0 times more return on investment than Templeton Global. However, HUMANA is 1.0 times more volatile than Templeton Global Bond. It trades about 0.02 of its potential returns per unit of risk. Templeton Global Bond is currently generating about 0.0 per unit of risk. If you would invest 7,914 in HUMANA INC on August 29, 2024 and sell it today you would earn a total of 121.00 from holding HUMANA INC or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.83% |
| Values | Daily Returns |
HUMANA INC vs. Templeton Global Bond
Performance |
| Timeline |
| HUMANA INC |
| Templeton Global Bond |
HUMANA and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Templeton Global
The main advantage of trading using opposite HUMANA and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Templeton Global 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 Templeton Global will offset losses from the drop in Templeton Global's long position.The idea behind HUMANA INC and Templeton Global Bond 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.| Templeton Global vs. Capital World Bond | Templeton Global vs. Capital World Bond | Templeton Global vs. HUMANA INC | Templeton Global 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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