Correlation Between HUMANA and Franklin FTSE
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By analyzing existing cross correlation between HUMANA INC and Franklin FTSE Canada, you can compare the effects of market volatilities on HUMANA and Franklin FTSE 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 FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Franklin FTSE.
Diversification Opportunities for HUMANA and Franklin FTSE
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Franklin is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Franklin FTSE Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin FTSE Canada 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 FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin FTSE Canada has no effect on the direction of HUMANA i.e., HUMANA and Franklin FTSE go up and down completely randomly.
Pair Corralation between HUMANA and Franklin FTSE
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Franklin FTSE. In addition to that, HUMANA is 1.72 times more volatile than Franklin FTSE Canada. It trades about -0.21 of its total potential returns per unit of risk. Franklin FTSE Canada is currently generating about 0.44 per unit of volatility. If you would invest 3,691 in Franklin FTSE Canada on September 1, 2024 and sell it today you would earn a total of 246.00 from holding Franklin FTSE Canada or generate 6.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Franklin FTSE Canada
Performance |
| Timeline |
| HUMANA INC |
| Franklin FTSE Canada |
HUMANA and Franklin FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Franklin FTSE
The main advantage of trading using opposite HUMANA and Franklin FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Franklin FTSE 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 FTSE will offset losses from the drop in Franklin FTSE's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Franklin FTSE vs. Franklin FTSE Australia | Franklin FTSE vs. Franklin FTSE Germany | Franklin FTSE vs. Franklin FTSE United | Franklin FTSE vs. Franklin FTSE Japan |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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