Correlation Between HUMANA and Franklin Lifesmart
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By analyzing existing cross correlation between HUMANA INC and Franklin Lifesmart Retirement, you can compare the effects of market volatilities on HUMANA and Franklin Lifesmart 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 Lifesmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Franklin Lifesmart.
Diversification Opportunities for HUMANA and Franklin Lifesmart
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Franklin is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Franklin Lifesmart Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Lifesmart 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 Lifesmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Lifesmart has no effect on the direction of HUMANA i.e., HUMANA and Franklin Lifesmart go up and down completely randomly.
Pair Corralation between HUMANA and Franklin Lifesmart
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Franklin Lifesmart. In addition to that, HUMANA is 1.64 times more volatile than Franklin Lifesmart Retirement. It trades about -0.01 of its total potential returns per unit of risk. Franklin Lifesmart Retirement is currently generating about 0.13 per unit of volatility. If you would invest 979.00 in Franklin Lifesmart Retirement on September 3, 2024 and sell it today you would earn a total of 105.00 from holding Franklin Lifesmart Retirement or generate 10.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.37% |
| Values | Daily Returns |
HUMANA INC vs. Franklin Lifesmart Retirement
Performance |
| Timeline |
| HUMANA INC |
| Franklin Lifesmart |
HUMANA and Franklin Lifesmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Franklin Lifesmart
The main advantage of trading using opposite HUMANA and Franklin Lifesmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Franklin Lifesmart 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 Lifesmart will offset losses from the drop in Franklin Lifesmart's long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
| Franklin Lifesmart vs. Small Cap Stock | Franklin Lifesmart vs. Commodities Strategy Fund | Franklin Lifesmart vs. Vanguard Windsor Fund | Franklin Lifesmart vs. Ab Value Fund |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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