Correlation Between HUMANA and Harding Loevner
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By analyzing existing cross correlation between HUMANA INC and Harding Loevner Frontier, you can compare the effects of market volatilities on HUMANA and Harding Loevner 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 Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Harding Loevner.
Diversification Opportunities for HUMANA and Harding Loevner
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and Harding is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Harding Loevner Frontier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Frontier 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 Harding Loevner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harding Loevner Frontier has no effect on the direction of HUMANA i.e., HUMANA and Harding Loevner go up and down completely randomly.
Pair Corralation between HUMANA and Harding Loevner
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Harding Loevner. In addition to that, HUMANA is 2.74 times more volatile than Harding Loevner Frontier. It trades about -0.22 of its total potential returns per unit of risk. Harding Loevner Frontier is currently generating about -0.21 per unit of volatility. If you would invest 842.00 in Harding Loevner Frontier on August 30, 2024 and sell it today you would lose (16.00) from holding Harding Loevner Frontier or give up 1.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Harding Loevner Frontier
Performance |
| Timeline |
| HUMANA INC |
| Harding Loevner Frontier |
HUMANA and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Harding Loevner
The main advantage of trading using opposite HUMANA and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Harding Loevner 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 Harding Loevner will offset losses from the drop in Harding Loevner's long position.The idea behind HUMANA INC and Harding Loevner Frontier 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.| Harding Loevner vs. Vanguard Emerging Markets | Harding Loevner vs. Vanguard Emerging Markets | Harding Loevner vs. HUMANA INC | Harding Loevner vs. Aquagold International |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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