Correlation Between HUMANA and Johcm Emerging
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By analyzing existing cross correlation between HUMANA INC and Johcm Emerging Markets, you can compare the effects of market volatilities on HUMANA and Johcm Emerging 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 Johcm Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Johcm Emerging.
Diversification Opportunities for HUMANA and Johcm Emerging
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Johcm is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Johcm Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Johcm Emerging Markets 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 Johcm Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Johcm Emerging Markets has no effect on the direction of HUMANA i.e., HUMANA and Johcm Emerging go up and down completely randomly.
Pair Corralation between HUMANA and Johcm Emerging
Assuming the 90 days trading horizon HUMANA INC is expected to generate 94.62 times more return on investment than Johcm Emerging. However, HUMANA is 94.62 times more volatile than Johcm Emerging Markets. It trades about 0.07 of its potential returns per unit of risk. Johcm Emerging Markets is currently generating about 0.04 per unit of risk. If you would invest 8,028 in HUMANA INC on August 30, 2024 and sell it today you would lose (333.00) from holding HUMANA INC or give up 4.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.74% |
| Values | Daily Returns |
HUMANA INC vs. Johcm Emerging Markets
Performance |
| Timeline |
| HUMANA INC |
| Johcm Emerging Markets |
HUMANA and Johcm Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Johcm Emerging
The main advantage of trading using opposite HUMANA and Johcm Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Johcm Emerging 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 Johcm Emerging will offset losses from the drop in Johcm Emerging's long position.The idea behind HUMANA INC and Johcm Emerging Markets 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.| Johcm Emerging vs. Vanguard Emerging Markets | Johcm Emerging vs. Vanguard Emerging Markets | Johcm Emerging vs. HUMANA INC | Johcm Emerging 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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