Correlation Between HUMANA and John Hancock
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and John Hancock Global, you can compare the effects of market volatilities on HUMANA and John Hancock 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 John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and John Hancock.
Diversification Opportunities for HUMANA and John Hancock
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and John is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and John Hancock Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock 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 John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Global has no effect on the direction of HUMANA i.e., HUMANA and John Hancock go up and down completely randomly.
Pair Corralation between HUMANA and John Hancock
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the John Hancock. In addition to that, HUMANA is 2.2 times more volatile than John Hancock Global. It trades about -0.19 of its total potential returns per unit of risk. John Hancock Global is currently generating about -0.06 per unit of volatility. If you would invest 1,249 in John Hancock Global on September 12, 2024 and sell it today you would lose (9.00) from holding John Hancock Global or give up 0.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUMANA INC vs. John Hancock Global
Performance |
| Timeline |
| HUMANA INC |
| John Hancock Global |
HUMANA and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and John Hancock
The main advantage of trading using opposite HUMANA and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock's long position.The idea behind HUMANA INC and John Hancock Global 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.| John Hancock vs. Dodge Global Stock | John Hancock vs. Franklin Mutual Global | John Hancock vs. T Rowe Price | John Hancock vs. HUMANA INC |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |