Correlation Between HUMANA and Franklin Templeton
Specify exactly 2 symbols:
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
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Franklin is -0.68. 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 is expected to generate 7.16 times less return on investment than Franklin Templeton. But when comparing it to its historical volatility, HUMANA INC is 3.12 times less risky than Franklin Templeton. It trades about 0.02 of its potential returns per unit of risk. Franklin Templeton ETF is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5,979 in Franklin Templeton ETF on August 29, 2024 and sell it today you would earn a total of 676.00 from holding Franklin Templeton ETF or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.83% |
| 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.The idea behind HUMANA INC and Franklin Templeton ETF 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.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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |