Correlation Between HUMANA and Franklin Templeton
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By analyzing existing cross correlation between HUMANA INC and Franklin Templeton ETF, you can compare the effects of market volatilities on HUMANA and Franklin Templeton 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 Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Franklin Templeton.
Diversification Opportunities for HUMANA and Franklin Templeton
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Franklin is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Franklin Templeton ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Templeton ETF 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 Templeton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Templeton ETF has no effect on the direction of HUMANA i.e., HUMANA and Franklin Templeton go up and down completely randomly.
Pair Corralation between HUMANA and Franklin Templeton
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Franklin Templeton. In addition to that, HUMANA is 1.74 times more volatile than Franklin Templeton ETF. It trades about -0.02 of its total potential returns per unit of risk. Franklin Templeton ETF is currently generating about 0.05 per unit of volatility. If you would invest 2,030 in Franklin Templeton ETF on August 27, 2024 and sell it today you would earn a total of 95.00 from holding Franklin Templeton ETF or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.58% |
| Values | Daily Returns |
HUMANA INC vs. Franklin Templeton ETF
Performance |
| Timeline |
| HUMANA INC |
| Franklin Templeton ETF |
HUMANA and Franklin Templeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Franklin Templeton
The main advantage of trading using opposite HUMANA and Franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Franklin Templeton 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 Templeton will offset losses from the drop in Franklin Templeton's long position.| HUMANA vs. Balchem | HUMANA vs. Stepan Company | HUMANA vs. Videolocity International | HUMANA vs. Luxfer Holdings PLC |
| Franklin Templeton vs. Franklin Liberty Investment | Franklin Templeton vs. iShares ESG Aggregate | Franklin Templeton vs. Franklin LibertyQ Equity | Franklin Templeton vs. Franklin Liberty Short |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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