Correlation Between HUMANA and Mfs Global
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By analyzing existing cross correlation between HUMANA INC and Mfs Global Real, you can compare the effects of market volatilities on HUMANA and Mfs Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Mfs Global.
Diversification Opportunities for HUMANA and Mfs Global
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Mfs is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Mfs Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Global Real 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Global Real has no effect on the direction of HUMANA i.e., HUMANA and Mfs Global go up and down completely randomly.
Pair Corralation between HUMANA and Mfs Global
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Mfs Global. In addition to that, HUMANA is 1.84 times more volatile than Mfs Global Real. It trades about -0.19 of its total potential returns per unit of risk. Mfs Global Real is currently generating about -0.07 per unit of volatility. If you would invest 1,738 in Mfs Global Real on September 13, 2024 and sell it today you would lose (16.00) from holding Mfs Global Real or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUMANA INC vs. Mfs Global Real
Performance |
| Timeline |
| HUMANA INC |
| Mfs Global Real |
HUMANA and Mfs Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Mfs Global
The main advantage of trading using opposite HUMANA and Mfs Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Mfs Global 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 Global will offset losses from the drop in Mfs Global's long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
| Mfs Global vs. Mfs Global Real | Mfs Global vs. Mfs Mid Cap | Mfs Global vs. Mfs International Diversification | Mfs Global vs. Janus Global Real |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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