Correlation Between HUMANA and Matthews Emerging
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By analyzing existing cross correlation between HUMANA INC and Matthews Emerging Markets, you can compare the effects of market volatilities on HUMANA and Matthews 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 Matthews Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Matthews Emerging.
Diversification Opportunities for HUMANA and Matthews Emerging
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUMANA and Matthews is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Matthews Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews 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 Matthews Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews Emerging Markets has no effect on the direction of HUMANA i.e., HUMANA and Matthews Emerging go up and down completely randomly.
Pair Corralation between HUMANA and Matthews Emerging
Assuming the 90 days trading horizon HUMANA is expected to generate 7.69 times less return on investment than Matthews Emerging. But when comparing it to its historical volatility, HUMANA INC is 1.46 times less risky than Matthews Emerging. It trades about 0.01 of its potential returns per unit of risk. Matthews Emerging Markets is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,663 in Matthews Emerging Markets on September 4, 2024 and sell it today you would earn a total of 336.00 from holding Matthews Emerging Markets or generate 12.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.17% |
| Values | Daily Returns |
HUMANA INC vs. Matthews Emerging Markets
Performance |
| Timeline |
| HUMANA INC |
| Matthews Emerging Markets |
HUMANA and Matthews Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Matthews Emerging
The main advantage of trading using opposite HUMANA and Matthews Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Matthews 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 Matthews Emerging will offset losses from the drop in Matthews Emerging's long position.| HUMANA vs. Usio Inc | HUMANA vs. MACOM Technology Solutions | HUMANA vs. Amkor Technology | HUMANA vs. Analog Devices |
| Matthews Emerging vs. Matthews Asia Innovators | Matthews Emerging vs. Columbia EM Core | Matthews Emerging vs. MAYBANK EMERGING ETF | Matthews Emerging vs. Matthews China Active |
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 Stocks Directory module to find actively traded stocks across global markets.
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