Correlation Between HUMANA and Franklin International
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By analyzing existing cross correlation between HUMANA INC and Franklin International Growth, you can compare the effects of market volatilities on HUMANA and Franklin International 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 Franklin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Franklin International.
Diversification Opportunities for HUMANA and Franklin International
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and Franklin is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Franklin International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin International 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 Franklin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin International has no effect on the direction of HUMANA i.e., HUMANA and Franklin International go up and down completely randomly.
Pair Corralation between HUMANA and Franklin International
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Franklin International. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.03 times less risky than Franklin International. The bond trades about -0.18 of its potential returns per unit of risk. The Franklin International Growth is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,768 in Franklin International Growth on September 12, 2024 and sell it today you would lose (18.00) from holding Franklin International Growth or give up 1.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
HUMANA INC vs. Franklin International Growth
Performance |
| Timeline |
| HUMANA INC |
| Franklin International |
HUMANA and Franklin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Franklin International
The main advantage of trading using opposite HUMANA and Franklin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Franklin International 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 Franklin International will offset losses from the drop in Franklin International's long position.The idea behind HUMANA INC and Franklin International Growth 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.| Franklin International vs. Franklin Dynatech Fund | Franklin International vs. Franklin Growth Fund | Franklin International vs. Franklin Rising Dividends | Franklin International vs. Franklin Small Cap |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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