Correlation Between HUMANA and Franklin Real
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By analyzing existing cross correlation between HUMANA INC and Franklin Real Estate, you can compare the effects of market volatilities on HUMANA and Franklin Real 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 Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Franklin Real.
Diversification Opportunities for HUMANA and Franklin Real
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and FRANKLIN is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Franklin Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Real Estate 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 Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Real Estate has no effect on the direction of HUMANA i.e., HUMANA and Franklin Real go up and down completely randomly.
Pair Corralation between HUMANA and Franklin Real
Assuming the 90 days trading horizon HUMANA is expected to generate 10.59 times less return on investment than Franklin Real. But when comparing it to its historical volatility, HUMANA INC is 1.5 times less risky than Franklin Real. It trades about 0.02 of its potential returns per unit of risk. Franklin Real Estate is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,622 in Franklin Real Estate on September 3, 2024 and sell it today you would earn a total of 365.00 from holding Franklin Real Estate or generate 22.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.95% |
| Values | Daily Returns |
HUMANA INC vs. Franklin Real Estate
Performance |
| Timeline |
| HUMANA INC |
| Franklin Real Estate |
HUMANA and Franklin Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Franklin Real
The main advantage of trading using opposite HUMANA and Franklin Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Franklin Real 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 Real will offset losses from the drop in Franklin Real's long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
| Franklin Real vs. Franklin Natural Resources | Franklin Real vs. Franklin Small Cap | Franklin Real vs. Templeton Developing Markets | Franklin Real vs. Franklin Balance Sheet |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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