Correlation Between HUMANA and MFS Charter
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By analyzing existing cross correlation between HUMANA INC and MFS Charter Income, you can compare the effects of market volatilities on HUMANA and MFS Charter 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 MFS Charter. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and MFS Charter.
Diversification Opportunities for HUMANA and MFS Charter
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and MFS is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and MFS Charter Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Charter Income 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 MFS Charter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Charter Income has no effect on the direction of HUMANA i.e., HUMANA and MFS Charter go up and down completely randomly.
Pair Corralation between HUMANA and MFS Charter
Assuming the 90 days trading horizon HUMANA is expected to generate 28.37 times less return on investment than MFS Charter. In addition to that, HUMANA is 1.0 times more volatile than MFS Charter Income. It trades about 0.0 of its total potential returns per unit of risk. MFS Charter Income is currently generating about 0.09 per unit of volatility. If you would invest 538.00 in MFS Charter Income on September 12, 2024 and sell it today you would earn a total of 101.00 from holding MFS Charter Income or generate 18.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.58% |
| Values | Daily Returns |
HUMANA INC vs. MFS Charter Income
Performance |
| Timeline |
| HUMANA INC |
| MFS Charter Income |
HUMANA and MFS Charter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and MFS Charter
The main advantage of trading using opposite HUMANA and MFS Charter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, MFS Charter 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 MFS Charter will offset losses from the drop in MFS Charter's long position.The idea behind HUMANA INC and MFS Charter Income 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.| MFS Charter vs. Freedom Bank of | MFS Charter vs. HUMANA INC | MFS Charter vs. Barloworld Ltd ADR | MFS Charter vs. Morningstar Unconstrained Allocation |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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