Correlation Between HUMANA and Harding Loevner
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By analyzing existing cross correlation between HUMANA INC and Harding Loevner Global, 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
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Harding is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Harding Loevner Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Global 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 Global 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 1.99 times more volatile than Harding Loevner Global. It trades about -0.16 of its total potential returns per unit of risk. Harding Loevner Global is currently generating about 0.15 per unit of volatility. If you would invest 4,373 in Harding Loevner Global on September 1, 2024 and sell it today you would earn a total of 106.00 from holding Harding Loevner Global or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Harding Loevner Global
Performance |
| Timeline |
| HUMANA INC |
| Harding Loevner Global |
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.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Harding Loevner vs. Calamos Global Equity | Harding Loevner vs. Ab Select Equity | Harding Loevner vs. Sarofim Equity | Harding Loevner vs. Huber Capital Equity |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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